Bitcoin Bull Run Intensifies as Analysts Predict $100K by Year-End

Based on recent developments, analysts and traders are increasingly optimistic about the potential for Bitcoin (BTC) to reach the $100,000 mark this year. Following Federal Reserve Chair Jerome Powell’s announcement that no further tightening or rate hikes would be implemented, Bitcoin’s price has skyrocketed by over 12% to $63,470, as confirmed by CoinDesk data. This surge was further validated by Friday’s disappointing US nonfarm payrolls figures, which reinforced Powell’s stance. As a result, there has been a significant increase in demand for Bitcoin call options on both Deribit and over-the-counter (OTC) networks, particularly for rallies exceeding $75,000 and even $100,000. According to QCP Capital, there has been a noticeable uptick in bullish follow-through in volatility and rates since the price rebounded from Friday and over the weekend, with Bitcoin risk reversals now exhibiting positive values (calls being more expensive than puts) and an upsurge in demand for September 2021 expiry $75,000 and $100,000 calls. Institutional cryptocurrency trading network Paradigm also reported a surge in demand for out-of-the-money (OTM) calls, notably with the March 25 $200,000 call buyer switching to the July 2024 $85,000 strike. Notably, over $688 million in open interest for the $100,000 strike call options has been recorded across various maturities on Deribit, making it the highest figure for any options listed on the exchange. Furthermore, there are currently over 150,000 call option contracts in play on Deribit, with the total notional open interest standing at more than $9.5 billion, twice the amount for put options, indicating strong bullish sentiment. Both fundamental and technical analysts concur that the path of least resistance for Bitcoin is upward, with 10X Research contending that the market would remain buoyant so long as the US election cycle and ongoing deficit spending continue. Nonetheless, a weaker dollar index (DXY) is essential for cryptocurrencies’ prosperity, as it often translates to better outcomes for risk assets. Since Wednesday’s Federal Reserve meeting, the DXY has dropped 1.2% to 105.20, and analysts believe this trend will persist as long as economic data support it and Fed officials refrain from challenging Powell’s stance. Finally, Elliot wave analysis by John Glover, the Chief Investment Officer of Ledn, predicts that Bitcoin could surge to $92,000, with the current price movement aligning with the Elliot wave theory’s anticipated path for Wave 4, albeit with a possible $52-$55k correction prior to Wave 4’s conclusion. The Elliot wave theory posits that asset price trends can be forecasted by observing and interpreting a repetitive wave pattern, comprising five waves, three of which represent the primary trend, while two illustrate temporary fluctuations.