In a financial landscape where certainty is a rare commodity, Bitcoin price, which has crossed over $35,000 mark, has once again captured the attention of the market.
Bernstein, a leading investment research firm, has projected a bold price target for the pioneering cryptocurrency, suggesting it could surge to a staggering $150,000 by 2025.
This prediction arrives at a time when Bitcoin has just sliced through the $35,000 barrier, bolstered by the Federal Reserve’s decision to keep interest rates unchanged.
Bernstein’s Bold Bitcoin Forecast and Market Impact
Bernstein, a renowned financial analysis firm, projects that Bitcoin’s value could soar to $150,000 by 2025. This bullish prediction hinges on the anticipation that the U.S. Securities and Exchange Commission (SEC) will greenlight a Bitcoin exchange-traded fund (ETF) by early 2024.
Currently, Bitcoin hovers around the $34,000 mark, making this projection nearly fivefold the present value and surpassing its previous peak of over $67,000 in November 2021.
BREAKING: A #Bitcoin ETF in early Jan is now looking like a ‘done deal’ – Bernstein Research pic.twitter.com/O1obxCRzMQ
— Bitcoin Archive (@BTC_Archive) October 31, 2023
Bernstein anticipates that, upon approval, the ETF could captivate approximately 10% of Bitcoin’s total supply, easing the way for mainstream investors to incorporate Bitcoin into their portfolios. Currently, a comparable entity, Grayscale’s Bitcoin Trust (GBTC), has approximately 3% of Bitcoin’s total supply under its belt.
These insights form part of a comprehensive report by Bernstein’s analyst Gautam Chhugani, who also sheds light on the anticipated Bitcoin “halving” in April 2024, which is expected to favor resilient Bitcoin miners.
Although Bitcoin recently touched the $35,000 mark, and there’s optimism surrounding an ETF approval by the year’s end, it’s crucial to acknowledge the SEC’s ambiguous stance on cryptocurrencies.
The SEC Chair, Gary Gensler, has voiced concerns regarding fraudulent activities within the sector. Furthermore, the crypto landscape has navigated through turbulences, including legal confrontations involving prominent platforms such as Binance and FTX.
Federal Reserve’s Rate Hold and Its Implications for Bitcoin
The Federal Reserve’s decision to keep interest rates unchanged between 5.25%-5.50% reflects the complex economic landscape, where inflation control and economic growth are in a delicate balance.
Fed Chair Jerome Powell acknowledged the conundrum of managing inflation while sustaining job and wage growth.
Despite 20 months of stringent monetary policy, it remains uncertain if financial conditions are restrictive enough to curb inflation, still well above the 2% target.
BREAKING: The Fed held interest rates at a 22-year high for a second straight meeting.
Follow our free live blog for the latest updates on the Federal Reserve’s November interest-rate decision https://t.co/ZPsSGyvFeu
— Bloomberg (@business) November 1, 2023
The Fed’s cautious stance, opting to observe job and price data until December, signals a potential pause in rate hikes, affecting market rates and, consequently, Bitcoin’s stability.
As market-driven rates rise, impacting borrowing costs, Bitcoin could face volatility, with investors closely watching the Fed’s next moves in this intricate economic puzzle.
Bitcoin Price Prediction
Bitcoin, the vanguard of cryptocurrencies, has demonstrated resilience with a notable recovery in its 24-hour trajectory, currently priced around the pivotal $35,222 mark. This juncture acts as a linchpin for market sentiments, with immediate resistance levels looming at $36,040, followed by $36,980 and $37,550.
Conversely, support levels are established at $33,850, with subsequent cushions at $33,000 and $32,400.
Technical indicators offer intriguing insights, with the Relative Strength Index (RSI) positioned at 69. This value teeters on the edge of overbought territory, suggesting a strong bullish undertone, yet cautioning of a potential retracement.
Additionally, Bitcoin’s valuation outstrips the 50-Day Exponential Moving Average (50 EMA) at $33,850, reinforcing the short-term bullish narrative.
Bitcoin Price Chart
The 4-hour chart reveals a breakout above the horizontal channel at $35,222, corroborated by a bullish engulfing candle—a harbinger of continued upward momentum.
In summation, Bitcoin’s current trend skews bullish, particularly above the pivotal $35,220 threshold. A slip below this level could pivot the trend bearish. The near-term outlook anticipates a test of the immediate resistance at $36,040.
The amalgamation of the breakout and supportive technical indicators points towards a prospective ascent, challenging higher resistances in the upcoming sessions.
Market participants should monitor these levels closely, staying alert to any signs of trend reversal.
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