Bitcoin’s recent surge briefly exceeded $87,700, a weakened dollar, surrounding speculation around the upcoming fiscal buyback. Arthur Hayes, co-founder of Bitmex and Maelstrom CIO, predicts that this could be the “last chance” to buy bitcoin for less than $100,000, as the Treasury, which repurchases its own debt, could inject more liquidity into the market. Hayes calls these buybacks “bazooka” at the price of Bitcoin, which could exceed the $100,000 hurdle.
Support from macroeconomic conditions has also been met with a rise in Bitcoin prices, including a weak dollar, which has reached its lowest point since March 2022. As the dollar drops, Bitcoin becomes more attractive to investors seeking hedges.
This sentiment has expanded further by its correlation with gold growth, with gold increasing by nearly 30% this year. Ryan Lee, chief analyst at Bitget Research, stressed that the “decline wedge breakout” in the Bitcoin technology chart supports this bullish narrative.
Global institutional interest in Bitcoin remains strong. Despite recent volatility, investment firms from Japan and the UK continue to invest capital into cryptocurrencies, demonstrating trust in Bitcoin’s long-term potential. As Bitcoin prices approach the $90,000 resistance level, analysts like Jamie Coutts, of Real-Vision Forecast, may climb to $132,000 by the end of the year by the expansion of the Fiat money supply (M2) drive. Coutts’ forecast is consistent with economist Timothy Peterson, who believes Bitcoin can reach $138,000 in three months, considering similar market patterns in the past.
As Bitcoin’s price movements grow, the political climate adds another layer of uncertainty. President Donald Trump's call for the removal of Fed Chairman Jerome Powell has raised expectations for potential slowdowns, which could further weaken the dollar and benefit Bitcoin's rally. The implications of this political pressure, coupled with continued macroeconomic factors, may lay the foundation for the continued rise of Bitcoin.
Despite the prospects, some analysts remain cautious. Michaël Vande Poppe warned that weekend price rallies could be misleading and that Bitcoin could tilt before breaking through resistance levels. The next major hurdle is about $91,000 and short-term price corrections may still occur until this level exceeds that level.
The convergence of weakening fiat currencies, institutional support and Treasury repurchases has brought a favorable environment for the price of Bitcoin to continue its upward trajectory towards $100,000 and beyond.
