Recently, Bitcoin, the largest cryptocurrency, surged past $111,000. Experts believe this upward trend will continue.
Factors Driving Bitcoin's Surge
Shunyet Jan, Head of Derivatives at Bybit, described Bitcoin’s current trend as a 'unique combination.' He highlighted that regulatory clarity, institutional capital influx, and macroeconomic fluctuations hasten Bitcoin’s mainstream acceptance. Over $1 billion weekly inflows into spot Bitcoin ETFs showcase institutional trust in the leading cryptocurrency.
Short-term and Long-term Projections
According to Blockstream CEO Adam Back, Bitcoin is still 'not overvalued' and could aim for $500,000 to $1 million in this cycle. Institutions such as Standard Chartered and Bernstein highlight the market’s long-term potential with forecasts ranging from $200,000 to $500,000 for 2025-2029. However, short-term political risks like Trump’s tariff measures pose a downward threat to the entire market.
Altcoins' Growth Prospects
While experts remain optimistic about Bitcoin, they maintain caution regarding altcoins. Jan asserts that major altcoins like Ethereum (ETH) could trail Bitcoin, yet high-interest rates and global uncertainties may restrict altcoin performance. Notably, the higher volatility of smaller coins dampens investors’ risk appetite.
Overall, despite short-term risks, the factors driving Bitcoin's growth indicate the likelihood of further increases. The analysis of altcoins also requires caution, as their prospects are not as clear.
