Bitcoin Price Hits $85K, Sets New ATH

1 week ago 19564
ARTICLE AD BOX

As of November 11, the Bitcoin (BTC) price has reached an all-time high of $85,000. This has become a significant movement for the cryptocurrency. With this movement, BTC has entered a “price discovery” phase, which is pretty uncharted in its future trajectory.

According to analysts, if Bitcoin continues to respect the demand zone and avoids a breakdown from the double-top pattern, a strong rally may be experienced.

Bitcoin Price Soars to New Highs: Bernstein Predicts $200K Target

Bitcoin is on an unprecedented tear as the digital currency has reached new all-time high of $85K.

The record-reaching is happening already for a few days following the election victory of Donald Trump and the 25 basis point rate cut by the Federal Reserve.

This political and economic turn has re-awakened investor interest in BTC, driving the price into uncharted territory. It came after a brave recommendation from Bernstein and Co., one of the most prominent asset managers overseeing $725 billion in assets, to increase exposure to Bitcoin and other cryptocurrencies as inflation rises and institutional interest grows.

JUST IN: $82,000 #BITCOIN NEW ATH 🚀 pic.twitter.com/o56YjFrT0i

— Bitcoin Magazine (@BitcoinMagazine) November 11, 2024

Bernstein is confident that Bitcoin will benefit because it’s seen as a hedge-asset proxy for “digital gold” in times of economic turmoil; he estimates further that cryptocurrency ETF assets could surge from $60 billion today to $190 billion by 2025, driving demand and liquidity higher.

Bernstein analysts see Bitcoin, supported by growing institutional demand against a scarce supply, reaching $200,000 as high by 2025. The introduction of spot Bitcoin ETFs will also catalyze growth, capturing the more hesitant institutional investors.

For longer-term prospects, Bernstein projects that BTC price may reach $1 million by 2033 on growing uses as a hedge against inflation and economic uncertainty. The broader development of the cryptocurrency market, be it the entrance of major institutions such as BlackRock and Fidelity, speaks volumes about a market that will see increased adoption and legality of digital assets.

Bitcoin’s Scarcity and Growing Demand Drive Up Prices

The mechanics of Bitcoin supply, including cutting events that reduce the rate at which new Bitcoins are created, are supposed to put upward pressure on the price. Recently, halving reduced the daily supply from 900 BTC to 450 BTC, which, according to historical studies, has triggered an astronomical price boost.

Large investors such as MicroStrategy, holding about 1.1% of the total supply, are all in and buying Bitcoin through convertible debt, thus minimizing liquidation risks and increasing corporate confidence in the long-term value of Bitcoin. Combined with the buoyancy in institutional demand and desirable macroeconomic conditions, Bernstein’s predictions are upbeat on Bitcoin.

Teuta Franjkovic

Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries. Starting her career in 2005 as a lifestyle writer for Cosmopolitan, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg. Influenced by figures like Don and Alex Tapscott and Laura Shin, Teuta embraced the blockchain revolution, believing crypto to be one of humanity's most crucial inventions. Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

Read Entire Article