4 Reasons Why $100K Is The Next Logical Step For Bitcoin
Bitcoin (BTC) has regained the $95,000 level after testing below $91,000 on November 26. The two-day 5 percent rally saw a breakout from traditional markets, particularly U.S. government bonds. This change contrasts with last week when Bitcoin price closely tracked the US 2-year Treasury note yield.
US 2 Year Treasury Rate vs Bitcoin/USD. Source: TradingView/Cointelegraph
If investors are moving away from Bitcoin's “at-risk” perception due to its tight monetary policy and censorship-resistant properties, the likelihood of reaching $100,000 before the end of the year increases. As some of the world's largest economies face growth challenges, investors are likely to shy away from rare assets in support of bitcoin's performance.
In the year On November 28, the 10-year yield on French government debt, the second largest economy in the euro zone, rose to 3%, matching Greece's debt yield. According to CNBC, the data underscores the threat of political instability in France as it struggles to secure support for its 2025 budget cuts.
France's budget deficit is projected to reach 6.1% in 2024, more than double the eurozone's target of 3%.
Another global economic powerhouse, Russia, saw its currency fall to its lowest level since March 2022, prompting central bank intervention. According to CNBC, inflation rose to 8.5% in October, but President Vladimir Putin quickly dismissed concerns. The central bank has raised interest rates to 21 percent, but it has not been able to curb the continued rise in prices.
Bitcoin ETF earnings and mining add to the crash outlook
Entry into the US space helped improve investor sentiment for Bitcoin Exchange Traded Funds (ETFs), reversing a two-day negative start on November 27.
Net income of $103 million was directed primarily to Fidelity's FBTC and Bitwise's BITB, while BlackRock's flagship IBIT fund remained flat. This was a significant change from the $548 million outflow recorded on November 25 and November 26.
7-Day Average Net Flows of Bitcoin Miners, BTC. Source: Glassnode
According to Glassnode data, the flow of Bitcoin miners has ended the 10-day moving average outflow, with deposits at mining-controlled addresses increasing. Although this speculation, without official confirmation, contributed to more market sentiment.
Typically, miners' stocks show confidence in an ongoing bull market, but profiteering often creates unnecessary fear, uncertainty and doubt, also known as FUD. To provide context, the 30-day average of miners' earnings stands at 476 BTC, which is expected to cover at least 30% of expenses.
Related: Bitcoin's Birth on Half Horn: 12 Years of Limited Supply and Major Stages
A report from Bernstein Research estimates that MicroStrategy will control 4% of the total Bitcoin supply by the end of 2033, attributing the company's large premium to its BTC holdings. The company currently holds 331,200 BTC on record and plans to continue its strategy of including debt and equity.
Bitcoin's path to $100,000 depends on how the US economy and the dollar respond to current macroeconomic conditions. However, onchain data and institutional interest remain strong, indicating strong bullishness that could propel BTC to new highs.
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
