Bitcoin Marks Highest Daily Close; Analysts Debate Prospects of $100,000 Milestone
Summary:
Bitcoin (BTC) registered a record daily close of $68,245 on March 4, reflecting a weekly and monthly increase of over 18% and 55% respectively. Many analysts speculate Bitcoin could surpass $100,000 by year's end, although some predict a potential local peak at $69,000. A report by Bitfinex Analysts indicates that US Bitcoin exchange-traded funds (ETFs) could push Bitcoin beyond its previous highs. Meanwhile, the Fear & Greed index, signals an impending correction, rising to a three-year high of 90, indicating "extreme greed". Additionally, Bitcoin's high funding rate suggests potential downward risk.
On March 4, Bitcoin (BTC), the pioneer cryptocurrency, recorded its highest daily close of $68,245, surpassing its former record close of $67,525 from November 8, 2021. The leading digital asset has experienced an upward trend of over 18% on a weekly basis and 55% monthly. This trend ignites the question: Could Bitcoin be steering towards a $100,000 target by year's end? Some market analysts forecast an even steeper price ascend, whereas others foresee a local peak at the highest ever price barrier of $69,000.
According to a study released by Bitfinex Analysts and shared with Cointelegraph, the introduction of Spot Bitcoin exchange-traded funds (ETFs) in the United States, indifferent to price changes, will be instrumental in breaking past BTC's former record high: "Our prediction sets a modest price target of $100,000-$120,000 to be accomplished by the fourth quarter of 2024, with the cycle peak expected to be hit at some time in 2025 with regards to overall crypto market capitalization."
As of 9:25 am (UTC), BTC appreciated by 2.85% over a day, exchanging hands at $66,799. On March 5, Bitcoin was within touching distance of $69,000, but fell $150 short of surpassing this historic high and psychologically significant price mark.
As K33 Research's Senior Analyst Vetle Lunde explained to Cointelegraph, Bitcoin's best performance often follows the year of its quadrennial halving events, which could aid in driving BTC past the $100,000 milestone: "If we look at previous performance and the declining impact of halving rallies, Bitcoin could potentially experience a 130-150% upturn in the year post-halving, suggesting a peak within the bracket of $125,000 - $150,000 in 2025."
MicroStrategy, the corporate entity with the largest Bitcoin holding, revealed plans on March 4 to secure $600 million for further BTC purchases via issuance of senior convertible notes. This was disclosed in a post on X (the ex-Twitter platform) by its Executive Chairman Michael Saylor.
The sentiment among numerous Bitcoin analysts leans toward optimism for BTC's near future. On March 1, anonymous quantitative analyst PlanB speculated that Bitcoin's bull market is still in its infancy, with around ten more months of explosive Fear of Missing Out. Additionally, Willy Woo, a Bitcoin analyst and managing partner at CMCC Crest, suggested that the ongoing rally is only a precursor, and that the primary bull market influenced by fundamental factors, has yet to kick off.
However, as indicated by the Fear & Greed index - a multifactorial cryptocurrency market sentiment barometer - which hit a three-year peak of 90, denoting 'extreme greed', a probable correction could be on the horizon. The index recorded its previous score above 90 in February 2021, shortly before a local peak in Spring.
Dave the Wave, an anonymous Bitcoin analyst, in his X post on March 5 hinted that Bitcoin prices might retrace to below $44,000 in 2024. He said, "While I'm comfortable with an uncertain future and the current technical and potential pivotal point scenario with resistance at former highs, the default move should still stick with the consistent parabolic trend until the bold dotted line at least breaks..."
Suggesting a potential downturn is also Bitcoin's funding rate, which is indicative of heavy leverage that could trigger a domino effect of liquidations. Bitcoin's funding rate on Binance, the leading crypto exchange globally, has spiked to a several-year high of 0.0995% as per Coinglass data.
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Published At
3/5/2024 2:25:00 PM
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