The Bitcoin Price and Death Forecasts
The Bitcoin price is approaching the elusive $100,000 level again, despite the cryptocurrency being pronounced “dead” over 400 times since its debut. As of 29 November, Bitcoin’s (BTC) price trades above $97,500, regaining more than 5.9% from its recent low, rekindling excitement about the currency’s possibility of hitting the six-figure mark soon.
Bitcoin’s price history has been volatile. Since 2010, Bitcoin has received constant skepticism, with media publications calling it “dead” 415 times. The first death pronouncement occurred when the Bitcoin price was only $0.11.
Since then, the cryptocurrency has defied critics, providing astonishing returns to long-term investors. According to Bitcoindeaths.com, every $100 investment in Bitcoin is worth more than $101 million.
Analysts Forecast Bitcoin Price Surge
Meanwhile, Bitcoin’s price has risen dramatically in recent months. Days ago, the leading cryptocurrency was within $200 of its all-time high of $99,800, with analysts now anticipating that the $100,000 barrier is within reach.
The Bitcoin price could reach six figures in the next few months, though it’s unclear whether this will happen before the end of 2024. Szymon Sypniewicz, co-founder and CEO of Ramp Network, stated that while a $110,000 Bitcoin price appears likely, it is uncertain whether it will occur before the end of the year due to projected market swings.
Some analysts believe that BTC’s recent price correction will result in a 30% drop before the cryptocurrency starts its upward trend toward the $100,000 target. This projection is based on the expanding global money supply, expected to reach $127 trillion in January 2026.
As market liquidity grows, an increase in demand may benefit BTC’s price. Despite these optimistic expectations, the Bitcoin price still faces short-term bearish pressure.
Analysts have highlighted $98,300 as a critical price level to monitor. If BTC breaks through this level, it could cause a wave of liquidation in leveraged short positions.
The liquidity of more than $1 billion in short positions across exchanges could put significant upward pressure on the market.
Bitcoin Whales Accumulate 16,000 BTC During Market Correction
Meanwhile, Bitcoin whales have profited from this week’s market drop, acquiring 16,000 BTC worth around $1.5 billion, according to CryptoQuant analyst Caueconomy. Short-term holders remitted roughly $4 billion in BTC to exchanges at a loss, resulting in the big price drop and prompting the accumulation.
According to CryptoQuant’s data, retail trading activity has been neutral amid institutional accumulation. Caueconomy stated that a considerable rise in spot buying volume is required for the Bitcoin price to surpass $100,000 and set a new all-time high (ATH).
This would necessitate participation from institutional players, retail investors, and day traders. According to Bloomberg, BTC’s surge to $100,000, combined with imminent crypto-friendly policies by US President-elect Donald Trump, generated $6.2 billion in inflows into spot Bitcoin exchange-traded funds (ETFs), making November their largest inflow month.
Expect a $20 Trillion Increase in the Global Money Supply – Experts
Jamie Coutts, Chief Crypto Analyst at Real Vision, said the expanding global money supply could significantly impact BTC’s price. The global M2 money supply, which includes cash and short-term bank deposits, is predicted to increase by $20 trillion in 2025, increasing the overall supply to more than $127 trillion.
This surge is driven by liquidity worries and anticipated central bank policies, particularly those of the United States Federal Reserve. Coutts remarked that BTC has traditionally taken roughly 10% of newly produced liquidity.
Therefore, the cryptocurrency market might get up to $2 trillion in investment.
Bitcoin Price and Impact from Past Liquidity Injections
It is worth noting that BTC’s price has been impacted previously by the increase in the money supply. When this supply increased from $94 trillion to $105 trillion, Bitcoin’s market capitalization increased fivefold, adding roughly $1.5 trillion in value.
If history repeats, the BTC market cap might experience another spike, attracting an estimated $2 trillion in investments and driving its price. In addition, the continued collapse of traditional fiat currencies bolsters BTC’s popularity.
The declining US dollar, rising inflation, and central bank liquidity initiatives drive more investors to Bitcoin, which they consider a hedge against inflation. Bitcoin’s impressive historical returns, which have surpassed many traditional financial assets, make it a popular choice among all categories of investors.
