Bitcoin hit a new all-time high this morning, reaching $124,529.
However, some market analysts predict that new records are on the horizon and prices could rise to $200,000.
Mena Theodlough, co-founder of Australia’s cryptocurrency exchange Coinstash, said an executive order issued by US President Donald Trump, which allowed Bitcoin and other cryptocurrencies to be included in his retirement plans, would open the door to a $12.5 trillion market for digital assets.
“The surge of over $150,000 can occur faster than many people expect,” Theodorou said, adding that the 401(k) plan will have access to around 90 million accounts, adding that the step could be adopted in other countries.
Not only does Theodorou share his optimism, but Bernstein, Bitwise and Standard Chartered also predict that Bitcoin could reach $200,000 before the end of the year.
Analysts say the rally is being driven by Trump’s executive order, a steady influx into Spot Bitcoin ETFs, the addition of crypto assets to the balance sheet by more than 200 companies, and a weakening of the US dollar. Furthermore, lower than expected US inflation is also increasing prices.
Zerocap analyst Emir Ibrahim said the rise is driven by institutional adoption, real-world integration and deep global liquidity, unlike retail investor-driven speculations of bull execution in the past.
*This is not investment advice.