Markets
Why Bitcoin Could Hit $71,000 in September and $100,000 in December
- In September, the price of Bitcoin could break out of the range of the last 4 months.
- According to QCP Capital, there has been an increase in $100,000 calls for BTC by December 2024.
Bitcoin [BTC] Price action has been resilient this week and has held above $60,000 despite the large losses in US stocks.
Additionally, tailwinds are starting to align in the second half of 2024 and could tip BTC toward a new all-time high. BTC has been stuck in the $60K-$71K range since March, but the sideways move could soon end.
Is BTC ready to break out of 4-month range?
According to the market analyst Capital RightBased on historical data, a potential breakout of the $60,000 to $71,000 range in September was likely.
“If history repeats itself, a Bitcoin exit from the reaccumulation range would occur in September 2024.”
Source: Rekt Capital
The projection was based on the sideways movement that occurs after the halving event. If the historical trend repeats, this period of consolidation could end in September.
A slight increase in stablecoin growth, which significantly decreased in the first half of 2024, supported the aforementioned breakout prospect for the bulls.
“Stablecoin inflows into #crypto markets are positive again! This is a very bullish development, historically aligned with #Bitcoin rallies.”
Source: CryptoQuant
The growth of stablecoins has allowed market participants to position themselves for offerings as market sentiment improves.
All eyes are on September for a likely Fed rate cut. Over 90% of interest rate traders expect the Fed to keep rates unchanged during the next Fed decision in late July. In September, chance of rate cuts stood at 93%.
Rate cuts could fuel BTC. Further BTC rallies are possible if Donald Trump, a pro-crypto candidate, wins the US presidential election in November.
However, a rate cut in September was not so obvious.
According to Bloomberg relationshipTrump had warned Fed Chairman Jerome Powell not to cut rates before November to avoid giving Biden an edge.
“The Fed should hold off on cutting rates ahead of the November elections and give the economy and Biden a boost.”
It remains to be seen whether Powell will take the warning seriously and dent market expectations.
Meanwhile, despite the resilient price action, the market remained bullish, with price targets of $100,000 for BTC by the end of the year, second to analysts at QCP Capital.
“Even with lower spots overnight, we continued to see significant institutional interest in the $100,000 December calls. This signals even stronger conviction in a year-end rally as the odds of a Trump victory increase.”