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Three catalysts that could push bitcoin beyond $120K

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Bitcoin and Solana Will Hit Parabolic Levels if Their Cup-and-Handle
Bitcoin and Solana Will Hit Parabolic Levels if Their Cup-and-Handle

Takeaways from the conference:

  • Bitcoin benefits from record growth of the global money supply.

  • Bitcoin Spot ETFs are likely to surpass gold in the near future, which will boost BTC’s position as a reserve currency.

  • Retail inflows have remained limited. However, if the interest of mainstream investors returns then a significant rally may be possible.

BitcoinBTCLast traded on 23 July at $120,000, traders began to doubt whether an all-time record could still be reached this year.

Sustainability of economic growth and global uncertainty artificial intelligence Sector remains the greatest risk.

Even so, there are three key drivers that could propel Bitcoin to a market cap of $2.3 trillion or more.

The largest tradable assets in terms of capitalization (USD). Source: 8marketcap/Cointelegraph

Analysts predict that Bitcoin will surpass the $23 trillion gold valuation. Others argue, however, that it may take much longer for Bitcoin’s decoupling to tech stocks as its adoption is still in its initial stages.

Nvidia’s (NVDA), even if the investor perception doesn’t change, is laying down the foundation for a paradigm shift.

Bitcoin trading like Nvidia Strategy, Metaplanet and Metaplanet

Nvidia’s valuation soared from $2.3 trillion to $4.4 trillion, even though its most recent quarterly net income was flat when compared with six months ago.

Investors could be betting that future earnings will be much higher, or the valuation metrics might be losing their relevance because governments expect to increase spending. accelerate monetary expansion Due to the mounting fiscal debt

Source: BGeometrics. Bitcoin/USD vs. USD M2 global currency supply. Source: BGeometrics

In July, the M2 money supply of the 21 biggest central banks in the world reached an all-time high $55,5 trillion. Meanwhile, the federal budget deficit in the United States totaled $1 trillion within just nine months.

These conditions are favorable for Bitcoin bulls even if BTC continues to have a relatively high correlation with technology stocks.

Inflows of retail money are not as high. are still largely absent Bitcoin is still expected to grow despite its 116% growth over the last 12 months.

The gap compared to the S&P 500’s 22% annual return acts as a magnet for new capital, particularly as the cryptocurrency gains traction in mainstream media with companies like Strategy MetaPlanet, (MSTR) is making the headlines.

Related: Bitcoin company Metaplanet kicks off August with first big buy

NVidia, Gold, Bitcoin Price, Economy, Markets, Stocks, Donald Trump, National Debt, Market Analysis, MicroStrategy, S&P 500
App Store rankings in US Finance Category. SensorTower

Coinbase, Robinhood, and other crypto-apps show no sign that retail investors are excited. They remain out of the Top 10, something they last did in November 2024.

Even though the trigger for renewed retail interests is unknown, there remains significant room for a retail rally to occur in 2025. This is especially so as both traditional finance and US government embrace Bitcoin.

Bitcoin gets 401(k) green light

US President Donald Trump signed an executive order The government of Canada announced on Thursday that cryptocurrency and other alternatives assets can be added to 401(k), retirement savings accounts.

Michael Heinrich, CEO and co-founder of 0G Labs said that the 401(k), rule change can be beneficial. “unlock trillions in retirement capital for Bitcoin.”

Matt Hougan is the chief investment officer at Bitwise. He said this change may be transformational for the entire industry.

US Bitcoin ETF Industry Assets, USD. Source: CoinGlass/Cointelegraph

By July 2025 gold-backed exchange traded funds in the US will have assets of $198 Billion, as opposed to $150 Billion for Bitcoin. according Forbes.

When spot Bitcoin ETFs exceed gold’s equivalent, this could cement the perception of Bitcoin as a currency rather than merely a commodity. a risk-on trade.

As Bitcoin becomes more relevant as a currency for governments, sovereign wealth fund, and public companies as well as their reserves, it is likely that institutional investors will add Bitcoin to their portfolios. Bitcoin is on a trajectory that will lead to a new high by 2025, even though the exact timing of this rise remains unclear.

This is intended as general information and not to be taken and should not be construed as investment or legal advice. These are solely the opinions, views, and thoughts of the author and may not reflect the opinions and views of Cointelegraph.