The recent surge in Bitcoin temporarily surpasses $87,700, following weakening of the US dollar and speculation about upcoming financial buybacks. Arthur Hayes, co-founder of Maelstrom’s BitMex and co-founder of CIO, predicts this could be a “last chance” to buy Bitcoin for under $100,000. Hayes could call these buybacks the “bazooka” of Bitcoin prices and push them well beyond the $100,000 barrier.
The rise in Bitcoin prices is also supported by macroeconomic conditions, including the weakening of the US dollar, reaching its lowest point since March 2022. As the dollar drops, Bitcoin becomes more attractive to hedging investors.
This sentiment has been further amplified by its growing correlation with gold, rising nearly 30% this year. Bitget Research’s chief analyst Ryan Lee emphasized that “down wedge breakout” on Bitcoin’s technology chart supports this bullish story.
Global institutional interest in Bitcoin continues to be strong. Despite recent volatility, investment companies from Japan and the UK continue to pour capital into cryptocurrencies, demonstrating continued trust in the long-term potential of Bitcoin. As Bitcoin prices approach a resistance level of $90,000, analysts like Jamie Coot from actual vision forecasts could reach “$132,000 by the end of the year,” and by expanding Fiat Money Supply (M2), it could reach $132,000 by the end of the year. Coutts’ predictions are consistent with those from economist Timothy Peterson. Timothy Peterson suggests that Bitcoin could reach $138,000 within three months, taking into account similar market patterns in the past.
As Bitcoin price movement gains momentum, the political situation adds another layer of uncertainty. President Donald Trump’s call to expel Federal Reserve Chairman Jerome Powell has raised expectations for potential rate cuts, which could further weaken the dollar and benefit Bitcoin rallies. The implications of this political pressure, coupled with ongoing macroeconomic factors, could set a stage of Bitcoin’s continued rise.
Despite the bullish outlook, some analysts remain cautious. Michael Van de Poppe warned that weekend price increases could be misleading and that Bitcoin could experience a dip before it could break through a substantial resistance level. The next major hurdle will see around $91,000, and short-term price corrections can still occur until this level rises.
The weakening of Fiat currency, increased institutional support, and convergence of financial buybacks creates a potentially advantageous environment for Bitcoin to continue its upward trajectory towards over $100,000.