Bitcoin Rebounds to $105K as Analysts Forecast 35% Year-End Increase
Cryptocurrencies rebounded on Monday after a turbulent start, reflecting a recovery in risk assets post-Moody’s downgrade of U.S. government bonds.
- Bitcoin dipped to $102,000 but recovered to $105,000, a 0.4% increase over 24 hours.
- Ether rose 1.2%, surpassing the $2,500 mark.
- Aave outperformed other large-cap altcoins; however, most members of the CoinDesk 20 Index remained down, with Solana, Avalanche, and Polkadot falling 2%-3%.
- U.S. stocks also showed recovery, with the S&P 500 and Nasdaq reversing earlier declines.
The initial downturn followed Moody’s downgrade of the U.S. credit rating, raising concerns in bond markets, pushing Treasury yields above 5% for 30-year notes and over 4.5% for 10-year notes.
Analysts indicated that the downgrade's long-term impact may be minimal. Ram Ahluwalia noted potential short-term selling pressure from institutional investors rebalancing portfolios. Callie Cox stated that the downgrade was anticipated and did not significantly affect stock market sentiment.
Bitcoin targets $138K this year
21Shares forecasts Bitcoin could reach $138,500 by year-end, representing a 35% increase. This outlook is based on:
- Institutional inflows
- A historic supply crunch
- Improving macro conditions
Spot Bitcoin ETFs are reportedly absorbing more BTC than produced daily, tightening supply as institutions and states consider strategic reserves.