Bitcoin is once again in the spotlight, with predictions of reaching $116,000 by the end of July 2024 due to a combination of positive macroeconomic factors.
Factors Driving Bitcoin Growth
According to Markus Thielen, head of research at 10x Research, three key factors are creating a "perfect storm" for Bitcoin: increasing institutional inflows into ETFs, uncertainty surrounding U.S. Federal Reserve policy, and a significant decrease in Bitcoin balances held on centralized exchanges.
Political Pressure and Its Market Impact
Thielen also highlights the political dynamics in Washington as a factor that could boost Bitcoin's price. U.S. President Donald Trump, who returned to office following the 2024 elections, has criticized Federal Reserve Chair Jerome Powell and expressed the need for his replacement, which could lead to a shift in monetary policy and lower interest rates.
Current Market Structure and Technical Levels
Currently, Bitcoin's price is hovering around $109,000, and analysts suggest that a breakout above $112,000–$113,000 could confirm the resumption of a bullish trend. Thielen noted that reaching the $116,000 level may require only a modest 6-7% move, which is relatively small by Bitcoin's historical standards.
The analysis of current conditions indicates that Bitcoin is on the brink of potential growth, but analysts caution about possible volatility and corrections if macroeconomic expectations change.
