Bitcoin's recent surge above $107,500 has sparked interest in the crypto market, though risks from ongoing tariff conflicts persist. Crypto expert Jelle forecasts possible changes in the next few hours.
Can Bitcoin Sustain Its Momentum?
After a recent dip to $105,100, Bitcoin has begun to rebound, prompting cautious optimism. Despite BTC's upward trend, altcoins have struggled to capitalize, showing minimal growth. Clarity on tariff-related matters is expected next week, which could stabilize market sentiments. Jelle asserts that Bitcoin might soon confirm its bullish trend, potentially moving to record-high levels.
What Role Does Liquidity Play in Crypto’s Future?
Although the Federal Reserve is not predicted to lower interest rates, global liquidity is rising due to significant rate cuts from various central banks, including the European Central Bank. However, with Fed Chairman Powell prioritizing the impact of tariffs on inflation, any adjustments may not align with President Trump's desire for lower rates. This situation is further complicated by current employment data indicating potential concerns, with greater clarity expected soon.
Institutional Investments in Bitcoin
Institutional investors are crucial, with over 60 companies already holding BTC. The potential supply scarcity enhances Bitcoin's value proposition as investment increases. Forecasts suggest that this number of institutional holders could rise to 600 by next year. Major firms like MSTR and SMLR are increasing their holdings, continuing to attract significant institutional interest and reinforcing its scarcity.
In conclusion, Bitcoin shows potential for further growth, but the resolution of tariff uncertainties and increased institutional interest are pivotal for sustained progress in the crypto market.
