Bitcoin's bullish surge fueled by Trump trade, escalating ETF inflows, and audacious price targets
Bitcoin's unprecedented winning streak extended to six consecutive weeks, propelled by a fresh wave of optimism following President Donald Trump's trade agreement with the U.K. As of last Saturday, Bitcoin was trading at an impressive $103,700, wriggling its nose just 4.4% shy of its all-time high.
Top brass from both the U.S. and China were shaking hands in Switzerland, trying to ink a deal that would lower tariffs. Beijing's delegation was led by Vice Premier He Lifeng, a close confidant of Xi Jinping, who would likely adopt a hardline stance against Trump's aggressive trade tactics. The deal could potentially minimize recession risks and beef up the chances of Federal Reserve cuts.
Analysts were bubbling with bullish forecasts for Bitcoin. In a client note, Standard Chartered analysts sheepishly admitted their $120,000 price target was too timid. They remained steadfast in their belief that Bitcoin would close out the year at a whopping $200,000.
BlackRock, the world's largest asset manager, predicted Bitcoin's price would skyrocket to a mind-blowing $700,000 in the long run. In a September white paper, the analysts began raving about Bitcoin's transformation into a safe-haven asset that's indepentent of stocks. They hailed its remarkable performance against equities after paramount crises like the Covid-19 pandemic and the Russia-Ukraine war.
Cathie Wood's Ark Invest expected Bitcoin's price to soar to $2.4 million by 2030, a move that would make its diluted valuation exceed the combined GDP of the U.S. and China. Tom Lee, the founder of FundStrat, believed Bitcoin would shoot up to $250,000 this year, while Chamath Palihapitiya saw it reaching $500,000.
Robert Kiyosaki, author of Rich Dad, Poor Dad, was sure Bitcoin would hit $250,000. In a recent note, Kiyosaki reiterated his beliefs, emphasizing Bitcoin's 21 million supply cap as the key driver.
Most analysts agreed on one thing: surging Bitcoin demand, as evidenced by the massive $40 billion inflows into spot ETFs. Meanwhile, Bitcoin's supply on exchanges dipped to five-year lows.
Technical Analysis
Biting into the weekly chart, Bitcoin's extended uptrend was apparent. Its recent dip found significant support at the ascending trendline connecting the lowest swings since November 2022. Bitcoin also hovered above the upper side of the cup and handle pattern at $68,835 and the 50-week moving average. It now needed to break through the all-time high at $109,300 for further gains.
If Bitcoin crossed that milestone, analysts estimated a likely price target of $123,000, calculated by measuring the cup's depth and then duplicating the distance from the upper side.
Portfolio Management Integration
In a recent development, Arkham integrated the portfolio management platform Haruko into its arsenal. The move signals an intensified focus on seamless management and growth of its burgeoning portfolio.
- In addition to Bitcoin's current $103,700 trading price, analysts predict it could surge to $200,000 by the end of the year and potentially $250,000, as suggested by Tom Lee.
- Standard Chartered analysts previously set a price target of $120,000 for Bitcoin, but now admit it might be too timid, as they believe it could reach $200,000.
- BlackRock, the world's largest asset manager, forecasts an even more dramatic rise, predicting Bitcoin's price could skyrocket to $700,000 in the long run.
- Cathie Wood's Ark Invest sees Bitcoin's price soaring to $2.4 million by 2030, a move that would make its diluted valuation exceed the combined GDP of the U.S. and China.
- Analysts believe that if Bitcoin breaks through its current all-time high of $109,300, a likely price target of $123,000 could be reached, calculated by measuring the depth of its current uptrend.
- The surge in Bitcoin demand, indicated by the massive $40 billion inflows into spot ETFs, and the decrease in Bitcoin's supply on exchanges to five-year lows, are key factors supporting its price rise.
- In the world of cryptocurrencies, Tron, XRP, and DeFi tokens have also been making headlines, with Binance Coin (BTC0) announcing an ICO for its new decentralized exchange (DEX), aiming to increase efficiency and lower trading costs.