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 is the head of research at 10x Research. He spoke to Cointelegraph about this after highlighting Three factors that can help Bitcoin’s valueBTCThis month’s price will be revealed in a report on Thursday.
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 said that he was pointing out the significant increase in the inflows of spot Bitcoin Exchange-Traded Funds (ETFs), the US Federal Reserve’s uncertainty, and the rapid decrease in Bitcoin stock on cryptocurrency exchanges.
Bitcoin’s move to $116,000 represents a 6.45% increase from its present price of $108,990, and a 3.6% jump from the current high of $111970. according CoinMarketCap provides data on the market.
On Wednesday, he pointed out that spot Bitcoin ETFs experienced their net-outflow for the first time. after 15 consecutive days of inflowsThe bullish trend for Bitcoin is reflected by the.
“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 criticised Fed chair Jerome Powell in April. He said that his termination was the reason for this surge. “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 received since their launch in January 20,24. according Farside data
A new Fed chair may be “more inclined toward rate cuts”
Thielen speculated that Trump could push for a Fed chairman who would advocate for looser monetary policies, which might benefit 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.”
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Source: cointelegraph.com
