As Bitcoin (BTC) approaches the elusive $70,000 threshold, speculation is mounting about whether the leading cryptocurrency could soon skyrocket to $100,000. The crypto world is buzzing with excitement as prominent analysts, like Axel Bitblaze, weigh in on what could drive this monumental surge. In his recent analysis on X (formerly Twitter), Bitblaze examines the critical catalysts that could provide the necessary liquidity for such a price leap.
Here's a closer look at the factors he believes are essential to Bitcoin's next major bull run:
1 Stablecoins as the Fuel for Bitcoin’s Next Big Move
Bitblaze highlights the fundamental role of liquidity in the crypto market, calling it “the lifeblood” of digital assets. Stablecoins are currently one of the most significant liquidity providers for Bitcoin, serving as the entry and exit point for most crypto investors. The total market capitalization of stablecoins now stands at a record $173 billion, surpassing pre-collapse levels of TerraUSD (UST).
Tether (USDT) leads the pack, holding 69% of the stablecoin market with a staggering $120 billion in circulation. Bitblaze draws attention to the strong historical correlation between Tether’s market cap and Bitcoin prices. For instance, between March 2020 and November 2021, USDT’s market cap increased 17-fold, which coincided with Bitcoin’s price climbing 16.5 times.
The analyst argues that the steady growth of USDT since March 2024, despite Bitcoin’s sideways movement, indicates a vast reservoir of liquidity poised to flow into BTC. “This suggests a strong possibility of sidelined capital deploying into Bitcoin and the broader crypto market as bullish sentiment picks up,” Bitblaze claims.
2 FASB’s Game-Changing Rule for Bitcoin on Corporate Balance Sheets
Next on Bitblaze's list is a pending rule change by the Financial Accounting Standards Board (FASB), expected to become effective in December 2024. Presently, publicly listed companies face unfavorable accounting standards for holding Bitcoin. If Bitcoin’s price drops below its purchase price, the company must report a loss, even if the asset's value eventually recovers.
The upcoming FASB update would allow companies to report their Bitcoin holdings at fair market value, reflecting actual prices at the reporting period's close. This change could incentivize more corporations to add Bitcoin to their balance sheets, enhancing Bitcoin’s reputation as an inflation hedge and asset diversification tool.
MicroStrategy is a prime example of this trend, having amassed over 252,220 BTC since August 2020, translating to a $7.4 billion profit on paper. With around $2.5 trillion in cash and equivalents on the S&P 500 companies’ balance sheets, Bitblaze believes the new FASB rules could lead to a fresh wave of corporate Bitcoin adoption.
3 The Expanding M2 Money Supply and Its Impact on Bitcoin
On the macroeconomic side, Bitblaze dives into the M2 money supply, a key measure of the money supply that includes cash, checking deposits, and other easily accessible forms of money. The M2 money supply currently stands at $94 trillion—roughly 39 times larger than the total crypto market capitalization.
He notes, “Historically, a 10% increase in M2 correlates with a 90% boost in Bitcoin’s price.” Despite the M2 supply being around 3% higher than its previous peak, Bitcoin has yet to break past its 2021 high. Given the Fed's moves towards interest rate cuts and the potential for more quantitative easing (QE), Bitblaze asserts that an influx of M2 liquidity into crypto could soon push BTC to new heights.
As billionaire investor Ray Dalio famously declared, “Cash is Trash.” In a low-interest environment, cash-seeking returns may increasingly flow into digital assets, including Bitcoin.
4 From Money Market Funds to Crypto: The Search for Yield
Lastly, Bitblaze identifies the growing money market funds, which have swelled to $6.5 trillion since November 2021. These funds have attracted investors seeking the safety of U.S. Treasury bills amid rising interest rates. However, with the Federal Reserve signaling further rate cuts, the yields on these investments are likely to decline, prompting investors to seek better returns elsewhere.
Bitblaze suggests that as the returns on Treasury bills become less attractive, a portion of this $6.5 trillion could be redirected toward riskier assets like Bitcoin. He emphasizes that crypto is often considered “the fastest horse” in an environment marked by QE and fiat currency devaluation, forecasting that this shift could lead to a massive inflow of capital into Bitcoin and other digital assets.
Conclusion: Is $100,000 Bitcoin on the Horizon?
Bitblaze concludes his analysis with a compelling argument for why a significant Bitcoin price rally could be imminent. He aggregates the potential liquidity sources—$94 trillion from M2 money supply, $6.5 trillion from money market funds, $2.5 trillion in S&P 500 cash holdings, and $173 billion from stablecoins—amounting to a total of over $103 trillion. Even a small fraction of this capital, say $200 billion, would represent a transformative influx, likely pushing Bitcoin’s price toward six figures.
While skeptics might question whether this level of capital is feasible, the growing mainstream acceptance of crypto, combined with favorable regulatory developments and macroeconomic shifts, could make the path to $100,000 a realistic target.
If the liquidity gates open, the next Bitcoin bull run could be closer than we think, bringing altcoins along for the ride and ushering in a new era of crypto adoption.
As the crypto world watches with bated breath, the question remains: Are you ready for the next Bitcoin boom?
Stay Informed
Follow our blog for the latest news, updates, airdrops, and other ways to earn crypto assets easily and often for free. If you find this information useful and would like to receive more updates, you can support the project with a small contribution, allowing us to continue providing valuable information to all crypto enthusiasts.
Bitcoin: bc1q20zx0j2fmmk9jca49hanrk2gl3hgqtysuy6fsv
Ethereum: 0x2132aa994E6b0cb0Bc86074Cb75624FAC71b8548
Doge: DJb9299NMr8kWfqNLwZkbaV7P5kgEANHWB
Solana: CMNBYVJi3Z8axYnu44YKpHhsyrKc3ZtszcznaYEguhSA
Follow Us on Social Media
Facebook: https://www.facebook.com/CriptoCanadas/
Instagram: https://www.instagram.com/cryptocanadas/
Twitter: https://twitter.com/cc4n4d4s
Tangled: https://tangled.com/u/cryptocanadas
Sem comentários:
Enviar um comentário