Crypto News- Bitcoin Expected to Hit $100,000 by Year-End, Experts Say
Crypto News– Despite the recent downturn in the crypto market, prominent industry figures are predicting that Bitcoin’s (BTC) price could reach $100,000 by the end of the year.
This optimistic forecast comes from Matt Hougan, Chief Investment Officer at Bitwise, and Anthony Scaramucci, founder of SkyBridge Capital. They base their confidence on several key developments in the crypto market.
Bitcoin’s Future: Experts Debate Short-Term Gains vs. Sustainable Growth
The crypto market is currently facing several challenges. One major factor is the distribution of Bitcoin from the now-defunct Mt. Gox exchange, which began in early July. Mt. Gox is expected to distribute over $8 billion in Bitcoin to creditors, and substantial amounts of it could soon hit the market.
Additionally, the US government’s sale of Bitcoin seized from Silk Road, the infamous online black market, is contributing to the market’s current pressures. The US Marshals Service recently selected Coinbase Prime to manage these assets, indicating that their sale is imminent.
The German government’s ongoing Bitcoin sales from various seizures are adding to these liquidity shocks. On-chain data shows that the German government is continuing its Bitcoin sell-offs.
According to Arkham Intelligence data, the German government transferred 375 BTC each to several crypto exchanges, including Bitstamp, Kraken, and Coinbase. They also moved 250 BTC to the wallet ‘bc1qq‘ and 1,000 BTC to the wallet ‘139Po.’ The German government’s wallet balance has decreased from approximately 24,000 BTC as of yesterday to 13,000 BTC at the time of writing.
However, Matt Hougan views these transactions as ‘one-off sales‘ that will eventually conclude. He believes that once the market absorbs these selling sprees, long-term bullish factors will drive significant growth.
Hougan highlights a notable shift in regulatory attitudes toward cryptocurrencies in Washington as one of the positive long-term factors for Bitcoin. Additionally, the imminent approval of spot Ethereum exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) is another element likely to boost the crypto market. He estimates these ETFs could attract $15 billion in net flows within their first 18 months on the market.
Furthermore, the Federal Reserve’s anticipated rate cuts over the next year could catalyze the crypto market. Lower interest rates generally bode well for risk assets, including cryptocurrencies.
FAQs
Why do analysts believe Bitcoin could reach $100,000 by year-end despite recent sell-offs?
Analysts believe Bitcoin could reach $100,000 due to several long-term bullish factors, such as favorable regulatory changes in Washington, the imminent approval of spot Ethereum ETFs by the SEC, and anticipated Federal Reserve rate cuts. They see recent sell-offs as temporary, one-off events that the market will eventually absorb.
What factors are contributing to the recent sell-offs in the crypto market?
Recent sell-offs are attributed to several factors, including the distribution of Bitcoin from the defunct Mt. Gox exchange, the US government’s sale of Bitcoin seized from Silk Road, and the German government’s ongoing Bitcoin sales from various seizures.
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