Macroeconomic conditions may have improved Bitcoin's outlook, leading analysts to be optimistic about it reaching $116,000 by the end of the month.
Bitcoin Testing Consolidation Level
Analyst Markus Thielen notes that Bitcoin is testing the upper boundary of its consolidation range, coinciding with the emergence of several macroeconomic factors that promote growth. According to CoinMarketCap, Bitcoin's current value is $108,990, requiring a 6.45% increase to reach $116,000.
Political Pressure on the Federal Reserve
Thielen points out that the pressure from US President Donald Trump on the Federal Reserve may play a role in increasing inflows into Bitcoin ETFs. Earlier this month, Trump criticized the Fed chair, which may have led to heightened interest in Bitcoin. "This rhetoric may have been a catalyst for the third wave of Bitcoin ETF accumulation," Thielen said.
Declining Bitcoin Reserves on Exchanges
The analyst also reports that Bitcoin reserves on crypto exchanges continue to shrink. For 98 consecutive days, there has been a decline in reserves, marking the longest period since 2020. "Such sustained outflows signal rising scarcity and mounting upside pressure," Thielen added.
Despite the risks associated with investing, current macroeconomic factors may positively impact Bitcoin's price, setting the stage for a new record.
