Bitcoin prices have been on a tear lately, punching through the $90,000 mark for the first time in six weeks Tuesday. And analysts say it could be on the verge of a broader comeback.
The cryptocurrency, which has been holding in a range of $75,000 to $90,000, will break out if it tops $90,000, wrote Larry Tentarelli, chief technical strategist for Blue Chip Daily Trend Report.
Until recently, Bitcoin had been in a steady slide since Trump was inaugurated. It’s currently 20 percent off its $107,000 high, hit before President Trump’s inauguration.
But recent market volatility could be boosting the cryptocurrency. Analysts say that Bitcoin and gold are offering investors alternative places to stash their cash as they ride out market volatility.
Trump’s repeated bashing of Fed Chair Jerome Powell could actually be boosting Bitcoin by increasing volatility in the wider market. Cantor analyst Brett Knoblauch wrote in a report that a new Trump-friendly Fed would probably lower interest rates, which would boost Bitcoin.
“If Trump were to be successful in removing Powell, and putting in place a more ‘dovish’ chairman, this could be viewed as a positive for cryptocurrencies as Bitcoin and alt coins have historically done better in lower interest rate environments,” Knoblauch wrote.
So, how high might Bitcoin go in 2025?
Christopher McMahon, CEO of Aquinas Wealth Advisors and author of “Faithful Financese in a January conversation with Quartz predicted Bitcoin could go as high as $130,000 this year under the watch of a crypto-friendly administration.
According to CoinDesk, 21Shares’ latest analysis predicts that based on historical trends and current market signals, the price of Bitcoin could reach $138,555 by the end of 2025. The world’s most popular cryptocurrency, the report emphasizes, is gaining strength due to macroeconomic uncertainty and on-chain momentum.