Euphoria has gripped the cryptocurrency markets as Bitcoin continues its relentless march upward, now trading between $90,000 and $110,000. The crypto asset’s remarkable performance has left skeptics scratching their heads, while long-term believers are quietly smirking “I told you so.”
The 200-week moving average, currently at $44,200, tells an interesting story. History has a funny way of repeating itself in crypto markets. Previous bull markets ended when the 200-week average hit the prior cycle’s peak – just like 2021’s bull run fizzled at $19,000 (matching 2017’s peak) and 2017’s party stopped at $1,200 (2013’s high). Fidelity’s analysis suggests Bitcoin could reach $1 million by 2030, demonstrating the asset’s massive growth potential. The mining rewards will decrease to 3.125 bitcoins in April 2024, potentially amplifying scarcity-driven price appreciation.
Past crypto peaks align perfectly with the 200-week moving average – a pattern that’s still far from repeating in today’s market.
But this time? We’re not even close to those historical patterns yet. The Bitcoin halving in 2024 has added significant momentum to the current rally.
Institutional money is flooding in like never before. Spot Bitcoin ETFs are gobbling up Bitcoin faster than miners can produce it – a whopping 51,500 BTC in December 2024 alone. That’s 272% more than what was mined. BlackRock’s iShares Bitcoin ETF casually collected $370.2 million in a single day. Just another Tuesday in crypto land.
The numbers don’t lie. With $36.9 billion in cumulative ETF inflows and predictions of ETFs controlling 7% of Bitcoin’s circulating supply by 2025, the landscape has fundamentally changed. Bernstein analysts are calling for $200,000 Bitcoin by 2025’s end. The market’s expecting prices between $100,232.52 and $128,657.47 for March 2025.
Trump’s return to the White House has Wall Street feeling optimistic about crypto’s future. The proposed Bitcoin Act 2024 could give Bitcoin an official role in U.S. financial policy – who would’ve thought?
Add in the Federal Reserve’s potential rate cuts for 2025 and a wave of deregulatory reforms, and you’ve got a perfect storm of bullish catalysts.
The smart money’s betting big on Bitcoin’s continued upward trajectory. And for once, both institutional investors and retail traders seem to agree on something. That’s about as rare as a quiet day in crypto.
