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Bitcoin Could Reach $180K In Current Cycle Thanks To Trump Victory, Says VanEck, But Has This Warning For Investors
Источник: Buzz FX / 23 ноя 2024 02:05:13 America/Chicago
Global investment manager Van Eck has reiterated its ambitious $180,000 price target for Bitcoin (CRYPTO: BTC), projecting this peak within the current market cycle.
What Happened: VanEck analysts Nathan Frankovitz and Matthe Sigel suggest that favorable regulatory developments in the U.S. and increased institutional interest could propel Bitcoin to this target within 18 months.
The analysts attribute the recent surge in Bitcoin’s price, which touched $99,800 in the last 24 hours, to the election victory of Donald Trump.
The analysts noted that Bitcoin entered a “new phase” on Nov. 11, with perpetual futures contracts’ funding rates surpassing 10%, indicating short- to medium-term momentum.
"This shift points toward stronger short- to medium-term momentum, as historically, elevated funding rates have been linked to higher 30 to 90-day returns, reflecting heightened bullish sentiment and demand."
However, they cautioned that sustained high funding rates could deter investors seeking long-term returns.
"On average, purchases made on days when funding rates were above 10% began underperforming at the 180-day mark, with this trend becoming even more pronounced over 1-year and 2-year periods."
Why It Matters: The bullish sentiment from Van Eck comes amid a broader context of market dynamics and expert predictions.
Mike Novogratz, CEO of Galaxy Digital Holdings Ltd., recently warned about the high levels of leverage in the crypto market, suggesting that while Bitcoin’s rise to $100,000 seems inevitable, a correction to $80,000 could occur due to excessive leverage.
Furthermore, Michaël van de Poppe, a leading cryptocurrency analyst, has forecasted multiple flash crashes for Bitcoin before the year ends, potentially dropping its value by 5-10% in a single day. These corrections, however, could present strategic entry points for investors, as altcoins might experience significant growth post-correction.
Additionally, Van Eck’s CEO, Jan van Eck, has previously expressed a bold prediction that Bitcoin could eventually reach $300,000, capturing a substantial share of the gold market as a digital alternative. This long-term outlook underscores the growing demand and institutional interest in Bitcoin as a hedge against inflation.
Price Action: At the time of writing, Bitcoin was trading at $98,663, down by 0.76% in the last 24 hours, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Unsplash
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