Bitcoin Price Targets $100K Driven by Increased Demand and BlackRock’s IBIT
Bitcoin price rebounded above $91.5K on Tuesday, indicating a potential bullish breakout. The coin has formed a symmetrical ascending triangular pattern after reaching an all-time high of approximately $93,477 last week.
From a technical analysis perspective, Bitcoin is in the euphoric phase of the macro bull market. Increased FOMO among traders is evident with heightened daily trading volume and market liquidations. Over $316 million was liquidated from the crypto-leveraged market in the past 24 hours, primarily involving long traders. Analyst Ali Martinez noted that Bitcoin could rise to $150K before facing a significant correction. Conversely, a sustained close below $89K may lead to support levels around $85K to $80K.
Reasons for Continued Bitcoin Price Rally
Bitcoin has been in a discovery phase following Donald Trump's election as the 47th president of the United States. Recent weeks saw significant net cash inflows into Bitcoin investment products, particularly from U.S. spot BTC ETFs, which registered about $254 million in inflows on Monday, surpassing daily miner production. Over the last seven weeks, these ETFs have accumulated over $9 billion in net cash inflows.
To enhance market liquidity, BlackRock's IBIT plans to launch options for trading on Nasdaq today, according to Alison Hennessy, Nasdaq Head of ETP Listings. Institutional investors like MicroStrategy Inc (NASDAQ: MSTR) and Metaplanet Inc have increased their purchases. MicroStrategy recently acquired 51,780 BTC, totaling 331,220 Bitcoins, representing over 1 percent of total supply. Metaplanet also announced the acquisition of an additional 124.11 BTC, raising its holdings to over 1,142 BTC.
Bigger Market Picture
Bitcoin price is anticipated to rise significantly as nation-states consider it for strategic reserve currency status. As spot gold ETFs decline, capital is expected to flow towards Bitcoin, benefitting altcoins in the process.
Altcoins such as Ethereum, Dogecoin, XRP, and Solana have indicated potential bullish breakouts, suggesting a forthcoming parabolic rally.