Current indicators suggest that Bitcoin might soar past $110,000 by January 2025.
This prediction closely follows the trajectory of the Global Macro Investor’s Total Liquidity Index, which examines the collective balance sheets of significant central banks.
Many analysts view this index as a valuable tool for forecasting Bitcoin’s price performance.
Predicted Peaks and Market Cycles
Experts refer to the projected $110,000 mark as a temporary high in Bitcoin’s ongoing market cycle.
Raoul Pal, the founder and CEO of Global Macro Investor, elaborates that if Bitcoin’s price aligns with the liquidity index, the peak on the right side of its price chart—indicating the lowest sell-off price—could reach around $110,000 in January.
Following this, a drop beneath $70,000 is expected by the next month.
Historical Trends and Market Responses
While a dip below $70,000 may seem concerning, analysts anticipate it to be brief.
Pal describes this decline as a natural outcome of what he sees as a fleeting liquidity surge, which he believes will continue to grow until at least the third quarter of 2025.
Alvin Kan, COO of Bitget Wallet, highlights that an increase in the money supply has historically driven Bitcoin’s price upward.
He points out that when the Federal Reserve boosts liquidity, it often enhances market conditions for digital assets like Bitcoin, leading to stronger investor interest and influxes of capital.
Historically, there’s been a trend where Bitcoin can absorb around 10% of the newly injected monetary supply.
Based on an expected $20 trillion increase in liquidity, this could lead to about $2 trillion flowing into Bitcoin investments in 2025.
Future Outlook and Crypto Market Dynamics
Rick Capital, a prominent crypto analyst, believes Bitcoin is entering a pivotal phase marked by rapid price gains.
Coupled with this, Jamie Coutts, chief crypto analyst at Real Vision, predicts that if the money supply continues to rise, Bitcoin’s price could surpass $132,000 within the coming year.
He underscores, however, that Bitcoin’s price cycles can be unpredictable.
Looking ahead, the crypto market is expected to keep thriving, particularly in the wake of Donald Trump’s anticipated victory in the upcoming U.S. presidential election on November 5.
Analysts are optimistic that a favorable regulatory landscape will allow cryptocurrencies to reach new heights.
Source: Cointelegraph
