A crypto analyst believes that Bitcoin will reach $116,000 this month, as three macroeconomic variables are in favor of the asset.
“I think $116,000 is possible,” Markus Thielen, head of 10x Research’s research department told Cointelegraph that highlighting Three macro-factors that can help Bitcoin (BTC( ) report will include this month’s price in its Thursday news.
Bitcoin’s price is at the highest point of the range. More upside could be possible
“Bitcoin is testing the top of its consolidation range, just as a perfect storm of macro catalysts begins to build,” He also pointed to the sharp increase in Bitcoin ETF inflows and uncertainty surrounding the US Federal Reserve, as well as the rapid decrease in Bitcoin supply at crypto exchanges.
Bitcoin’s rise to $116,000 marks a 6.45% leap from its present price of $108,990. It also represents a 3.60% increase over its all-time highest of $111970. according CoinMarketCap provides data on the market.
The ETFs that track Bitcoin spot experienced a net outflow on Wednesday, the first day in which they had seen a strong increase. after 15 consecutive days of inflowsAs a bullish Bitcoin indicator.
“These flows are increasingly outpacing price action, signaling institutional demand driven more by macro concerns than short-term momentum.”
Thielen suggested that political pressure from US President Donald Trump on the US Federal Reserve may have contributed to the increase in inflows. Trump made a criticism of Fed Chairman Jerome Powell back in April. “can’t come fast enough.”
“This rhetoric may have been a catalyst for the third wave of Bitcoin ETF accumulation,” Thielen said.
Since May 1 US-based Bitcoin ETFs received $9.91 Billion in Inflows. This is about 20% of the total amount they have collected since their launch in January 20,24. according Farside Data.
A new Fed chair may be “more inclined toward rate cuts”
Thielen suggested that Trump may push for the appointment of a new Fed chairman who will advocate a looser policy on monetary matters, possibly benefiting Bitcoin.
“It may only be a matter of time before Trump nominates a new Fed chair more inclined toward rate cuts, evoking comparisons to Arthur Burns, whose capitulation to political pressure helped fuel the inflation of the 1970s.”
Related: Bitcoin bulls gain edge, target $110K ahead of $20B monthly options expiry
Thielen has also noted that Bitcoins balances in crypto exchanges can be misleading. “are shrinking.”
“Exchange balances have now declined for 98 consecutive days, marking the longest drawdown since 2020, which preceded the last major bull market breakout,” Thielen said.
“Historically, such sustained outflows signal rising scarcity and mounting upside pressure. If this pattern continues, Bitcoin could be setting the stage for another breakout,” He added.
Magazine: Pakistan will deploy Bitcoin reserve in DeFi for yield, says Bilal Bin Saqib
The article is not intended to provide investment advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making any kind of investment.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
