Some investors expect Bitcoin to break out of the consolidation phase and reach new record highs later in the year.
Behind this optimistic expectation is the accelerated purchases of the Corporate Treasury, a strong cash inflow into exchange-traded funds (ETFs), and cryptocurrency laws going on in the US Congress.
Bitcoin rose nearly 30% in the second quarter, but for that period it is labelled “integrated.” Bitcoin profits fell month after trading in a narrow price range for three months. Cryptocurrency rose 15% in the first half of the year, with a more subdued performance compared to a 45% increase in the same period last year. But analysts say that the real rise may be beginning now.
Bitcoin, which has been trading for almost over $100,000 since May 9th, is trading at $108,000 today, down around 3% below its $111,999 record in May.
“We are still seeing accelerated in adopting ETFs. Finance finance is just beginning to develop a Bitcoin strategy and we hope that more money will flow through these channels,” according to Ryan, with increasing personal and institutional interest in Bitcoin, indicating a strong upward potential.
Another important factor in this rise is the “Bitcoin finance company.” Companies such as Nakamoto, Twenty One and Effort Asset Management have been merging with public companies to raise funds to purchase Bitcoin through share issuance. “There are mergers pending approval from the SEC, so there’s a lot of money waiting to buy Bitcoin that you haven’t bought yet,” said Steven Lubka, vice president of investor relations at Nakamoto.
Lubka says not only institutional demand, but also new fiscal stimulus packages expected from Washington and the record-breaking stock market will contribute to the rise in Bitcoin. “Bitcoin is on the one hand becoming a more mature asset class, while massive amounts of capital flowing into this sector in the financialization process,” says Lubuka.
According to Geoff Kendrick, Standard Chartered’s head of digital asset research has suggested that US regulatory developments may also support Bitcoin for the rest of the year. If President Donald Trump appointed a replacement for Federal Reserve Chairman Jerome Powell, the market could set prices in anticipation of previous interest rate cuts. Furthermore, the Genius Act, a stable coin bill expected to pass Congress, can raise interest in Bitcoin, especially among individual investors.
Kendrick noted that some investors may be worried about Bitcoin’s four-year cycle towards the end of September. Noting that in previous cycles prices fell about 18 months later after half of each, Kendrick said the influx of the scheme could offset those effects this time.
Bitcoin could reach $135,000 by the end of the third quarter and $200,000 by the end of the year, according to Standard Chartered estimates. “We hope that once the market overcomes these cyclical fears, Bitcoin will continue to rise,” Kendrick said.
*This is not investment advice.