Recent analyses suggest Bitcoin may surge to an unprecedented high of $110,000 before any major pullback. Analysts attribute this potential rally to easing inflation and an increase in global liquidity.
Bitcoin's price has been on an upward trajectory for the past two weeks, with data from TradingView showing a bullish weekly close just above $86,000 as of March 23. According to Arthur Hayes, co-founder of BitMEX and chief investment officer of Maelstrom, this positive momentum could propel Bitcoin to new heights.
In a post dated March 24, Hayes expressed confidence in Bitcoin reaching $110,000, citing the U.S. Federal Reserve's likely shift from quantitative tightening (QT) to quantitative easing (QE). This shift, Hayes argues, could provide the economic stimulus necessary for Bitcoin's rise. Currently, QT involves the Fed reducing its balance sheet by selling or allowing bonds to mature, whereas QE would involve the Fed buying bonds to lower interest rates and stimulate economic activity.
However, not all analysts share Hayes' immediate outlook. Benjamin Cowen, CEO of IntoTheCryptoVerse, pointed out that the Fed's QT is ongoing, albeit at a reduced pace. He notes that mortgage-backed securities are still being allowed to expire, indicating that a full policy pivot has not yet occurred.
Looking back at historical data, the last QE phase in 2020 led to Bitcoin's price soaring over 1,000%, from about $6,000 to a then-high of $69,000. Many believe a similar environment might be developing once again.
Macroeconomic conditions further bolster a positive Bitcoin outlook, according to Enmanuel Cardozo of the RWA tokenization platform Brikken. Cardozo highlighted rising global liquidity and the potential establishment of a U.S. Bitcoin reserve as factors that could drive Bitcoin towards the $110,000 milestone. He noted, however, that Bitcoin's typical volatility could still lead to corrections, potentially down to $76,500.
Other experts, like Ryan Lee, chief analyst at Bitget Research, acknowledge the potential for further gains, particularly as Bitcoin recently closed above key moving averages. Nevertheless, the resistance level around $88,000 must be overcome to maintain this bullish momentum.