Bitcoin Reaches New All-Time High of $108,000 Amid Bullish Predictions
Bitcoin has achieved a new all-time high of $108,000. This milestone has led to predictions of further growth, with many analysts suggesting that the bullish momentum is not yet over.
Bitcoin has remained above $100,000 recently, indicating increased confidence in the asset. Ash Crypto predicts BTC could reach between $150,000 and $200,000, although current price action shows a bearish divergence in the RSI, which may lead to short-term declines. He noted a similar pattern occurred in Q4 2023 when Bitcoin continued to rise despite warnings.
Michael Van De Poppe forecasts that BTC might reach $300,000 in this cycle, drawing parallels to the market dynamics of 2017 characterized by significant growth potential.
Market Sentiment and Demand Driving Bitcoin's Momentum
The Crypto Fear and Greed Index currently reads 87, indicating extreme greed in the market. This sentiment can lead to FOMO (Fear of Missing Out), potentially driving further buying activity and increasing Bitcoin's price.
According to CryptoQuant, while futures trading has decreased, spot market demand is rising, contributing to Bitcoin's upward price movement.
Spot Market Demand Takes the Lead as Bitcoin Continues Its Upward Momentum
“While futures market activity has declined, spot market demand continues to increase. This suggests that speculative excess in the futures market is cooling, while buying pressure in the spot market is… pic.twitter.com/M4o4TsG02V
— CryptoQuant.com (@cryptoquant_com) December 17, 2024
Political Factors Influencing Bitcoin's Growth
The election of Donald Trump as the next US President has positively impacted Bitcoin's trajectory. Trump has expressed support for cryptocurrency, including discussions about establishing a national Bitcoin reserve. Such actions could legitimize Bitcoin further.
European lawmaker Sarah Knafo has also proposed a strategic Bitcoin reserve for the EU, opposing the creation of a digital euro. These initiatives could encourage more countries to accumulate Bitcoin and reduce regulatory barriers, potentially leading to increased adoption and higher prices.
Integration into Traditional Financial Markets
Bitcoin's integration into traditional finance is progressing. MicroStrategy reported nearly $11 million invested by retail investors, tripling the daily average inflow for the year following its inclusion in the Nasdaq-100 index. This development is expected to attract more institutional investors as Bitcoin's influence grows beyond the cryptocurrency market.