Bitcoin can increase to $ 116,000 by the end of this month while three macroeconomic factors become favorable to the assets, according to a crypto analyst.
“I think $ 116,000 is possible,” said Cointelegraph, 10x research manager, told Cointelegraph after highlighting the three factors that could help strengthen the Bitcoin (BTC) price this month in a Thursday report.
Bitcoin tests the top of the range, and more upwards is possible
“Bitcoin is testing the top of its consolidation range, as well as a perfect mactalysers’ storm begins to build,” he said, pointing to the sharp increase in the Bitcoin Exchange Traded Fund (ETF) spot, the entries in the American federal reserve and the rapid drop in bitcoin supply on crypto exchanges.
A decision for Bitcoin at $ 116,000 would be a jump of 6.45% of its current price of $ 108,990 and a jump of 3.60% of its top of all current time of $ 111,970, according to CoinmarketCap data.
He underlined strong entries in the FNB Bitcoin Spot, which experienced their first day of net exit on Wednesday after 15 consecutive days of entries, as an uproar indicator for Bitcoin.
“These flows are increasingly exceeding prices’ action, signaling the institutional demand caused more by macro-bilms than short-term momentum.”
Thielen said political pressure on the American federal reserve of US President Donald Trump was perhaps the reason for the sharp increase in entries. In April, Trump criticized the president of the Fed, Jerome Powell, saying that his dismissal “cannot come quickly enough”.
“This rhetoric may have been a catalyst for the third wave of Bitcoin ETF accumulation,” said Thielen.
Since May 1, Bitcoin Bitcoin FNB based in the United States have recorded $ 9.91 billion in entries, or around 20% of their total entries since their launch in January 2024, according to Farside data.
A new Fed chair can be “more inclined to rate reductions”
Thielen has hypothesized that Trump could put pressure for a new Fed chair which could defend a more loose monetary policy, for the benefit of Bitcoin.
“It is perhaps only a question of time before Trump appoints a new Fed chair more inclined to rate reductions, evoking comparisons with Arthur Burns, whose capitulation at political pressure has contributed to fuel the inflation of the 1970s.”
In relation: Bitcoin Bulls Gain Edge, target $ 110,000 before the expiration of monthly options of $ 20 billion
Thielen also pointed out that Bitcoin balances on crypto exchanges “shrink”.
“The exchange sales have now decreased by 98 consecutive days, marking the longest withdrawal since 2020, which preceded the last significant escape from the bull market,” said Thielen.
“Historically, such sustained outings report an increasing rarity and an upward upright assembly. If this model continues, Bitcoin could prepare the ground for another escape,” he added.
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This article does not contain investment advice or recommendations. Each investment and negotiation movement involves risks and readers should conduct their own research when they make a decision.
