Bitcoin (BTC) has risen above $113,000, its highest value since late August, indicating a renewed bullish pressure in the top cryptocurrency, after a growing anticipation following the Federal Reserve rate cut at its September 17 meeting.
The rally has revived hopes in crypto markets, with some experts forecasting BTC to approach $150,000-$200,000 by the end of the year.
The currency has been resisting at the level of $113,000, an important level that investors are thinking might unlock the way to more targets if broken. Technical analysts look for the next levels of resistance at $114,200 and $115,000, which might provide the way forward to $117,000 in the short run.
Also Read: Bitcoin Holds Strong Above $111,000 Despite $12.7 Billion Whale Sell-Offs
The expectation of reduced borrowing costs in the U.S. has altered sentiment towards riskier assets like Bitcoin. Last week’s poor jobs report bolstered the argument for a possible 25 basis point reduction, with some observers, such as BitMEX co-founder Arthur Hayes, even going so far as to propose a 50 basis point cut is feasible. Lower yields will generally drive investors out of money markets that carry cash and into more lucrative alternatives like crypto.
CoinCentral estimates that around $7.26 trillion from US money markets potentially may increasingly flow into digital assets if interest rates significantly come down.
Despite the optimistic mood, on-chain metrics indicate strong whale selling, the strongest since mid-2022. Major holders’ strong selling may keep the upside in check in the near term. Nevertheless, consistent inflows into BTC ETFs have provided support at these prices, indicating persistent institutional demand.
At the same time, Bitcoin’s market dominance is rising to close to 59%, signaling capital flowing back into the top cryptocurrency with the altcoins failing to perform.
Leading figures are still expressing high levels of optimism. Tom Lee of Fundstrat sees Bitcoin at $200,000 by the end of the year, basing this prediction on positive macroeconomic conditions and seasonal patterns. Other analysts who belong to Michael Saylor also forecast a minimum of $150,000 over Christmas. Standard Chartered also has a target of $200,000 by 2025.
But a word of warning remains. Canary CEO Steven McClurg places only a 50% probability on a year-end rally to $150K, with the caveat that the market remains subject to unexpected interruption.
All attention is currently on the Fed for now. If the policymakers bring down interest rates significantly, BTC can take its rally to new heights. But if it fails to hold above the $113,000 level, it can lead to a downtrend of price towards $108,000 to $110,000, reminding traders that volatility is not yet over.
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