Bitcoin Price – Bitcoin’s Euphoria Stage: BTC Set to Rally Until 2025
Bitcoin Price – Bitcoin (BTC) has officially reached the historic $100,000 mark on December 6, marking a significant achievement in cryptocurrency history. This milestone comes despite a lack of momentum in most global assets and a backdrop of declining global liquidity. As of now, Bitcoin’s price stands at $99,540, just shy of the all-time high, but analysts are optimistic about its trajectory in the coming months.
Bitcoin Surges Amid Global Asset Decline
In a month when major global assets showed sluggish performance, Bitcoin stood out with an impressive 32% price surge. While oil dropped by 6.3%, the S&P 500 fell by 1%, and gold declined by 1%, Bitcoin has managed to defy the trends and post substantial gains. This rally against other assets is a promising sign for Bitcoin investors, strengthening expectations that the ongoing bull market will continue until the end of 2025. This phase is often referred to as the “euphoria stage” in crypto trading.
Bitcoin Enters “Euphoria Stage” With Strong Momentum
According to Quinten François, co-founder of WeRate, Bitcoin has entered the euphoria stage, signaling that the current rally could last for another 12 months. François wrote on December 7 that Bitcoin is now in a phase where the market experiences extreme optimism. This is based on the Net Unrealized Profit/Loss (NUPL) metric, which measures the difference between unrealized profits and losses among long-term holders of Bitcoin. As Bitcoin continues to enter the euphoria stage, the expectation is that its rally could extend through the end of 2025, driven by growing investor confidence and market sentiment.
Potential Risks and Outlook for Bitcoin
Despite the current optimism, there are warnings about the sustainability of Bitcoin’s rally in the face of global liquidity issues. James Coutts, Chief Crypto Analyst at Real Vision, pointed out that Bitcoin reached its new all-time high (ATH) amid deteriorating liquidity conditions. He mentioned in a December 6 post that if liquidity conditions worsen, the euphoria could only last for a limited time, and a pullback may be necessary before Bitcoin continues its rise.
However, Raoul Pal, Founder and CEO of Global Macro Investor, suggests that Bitcoin could see a “local top” above $110,000 by January 2025. This prediction is based on Bitcoin’s correlation with the global M2 liquidity index, which tracks all cash and short-term bank deposits. If liquidity conditions ease, Bitcoin’s rally could continue in the short term before a potential correction takes place.
Conclusion: A Bright Future for Bitcoin Investors
Bitcoin’s $100,000 milestone is a promising indicator for the future, despite challenges in the global market. As the rally enters the euphoria stage, analysts predict that Bitcoin could continue its upward trajectory in the short term, with a possible top above $110,000 by early 2025. While liquidity conditions remain a key factor to watch, Bitcoin’s resilience and strong performance against other global assets suggest that the future remains bright for Bitcoin holders.
Disclaimer: This website’s content is for informational purposes only and does not constitute financial advice, with all cryptocurrency purchases carrying inherent risks.
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