Bitcoin could register a new all-time high as early as January 2025.
This prediction comes from a recent report by analysts at 10x Research.
In a separate report, BitWise's Matt Hougan believes that the cryptocurrency could be set to hit $200k, $400k, and even as high as a seven-figure valuation.
Ethereum is displaying weakness and could lend strength to Bitcoin's growth.
Bitcoin is on the verge of hitting a new all-time high. Investors from all over the market can feel it coming, even with the volatility of the upcoming election on 5 November.
According to recent reports this week, 10x Research has forecasted that Bitcoin could reach $100,000 by January 2025.
This is no empty prediction.
10x Research predicts that this surge will be driven by institutional interest, market dynamics, and Bitcoin's increasing dominance over other cryptos.
Generally, analysts believe that Bitcoin’s ongoing momentum has the power to gain even more strength in the months ahead.
Let’s see some of these encouraging signs.
According to 10x Research, this outlook for Bitcoin is based on their predictive model.
Interestingly, this model has proven 86.7% accurate over its past 15 signals. Said model issued a recent buy signal for the cryptocurrency on 14 October—which happens to be the day Bitcoin started its surge from $62,000 to $73,000 and gained more than $10,000.
Hitting 60,000 soon
In a recent report, the firm explained that when Bitcoin achieves a new six-month high (as it did recently), it will have completed a historical trend.
This trend typically sees the cryptocurrency yield a median return of 40% over the following three months.
In essence, based on Bitcoin’s price of $73,000 at the time of the prediction—it should hit anywhere above $101,000 by late January 2025.
10x Research also highlighted the "Bitcoin black hole effect."
This phenomenon typically happens when the cryptocurrency’s dominance draws value away from other cryptocurrencies.
In essence, investors start to dump altcoins and invest solely in Bitcoin.
As Bitcoin establishes itself further as a stable version of "digital gold," its appeal as a long-term investment will grow.
Bitcoin’s dominance at 58%
Institutional investors are expected to jump on this bandwagon the most, as shown in October when they pumped $4.1 billion into the Bitcoin ETF market.
For many institutional investors, Bitcoin is increasingly seen as stable—even a form of digital gold.
10x Research notes that Bitcoin’s appeal to these investors now positions it as a form of digital gold.
Growing investor interest
The firm noted how firms like BlackRock publicly endorsed the cryptocurrency’s potential.
By this logic, Bitcoin’s value is increasingly tied to its role as a hedge against the volatility of the traditional market.
Ethereum is also not out of the picture.
10x Research also mentioned the second-largest cryptocurrency by market, noting that it might experience short-term rallies.
However, it is unlikely to maintain long-term growth without more innovation.
Ethereum has been red for most of the year
The report mentioned the cryptocurrency’s relatively low returns over the last two years as a limiting factor.
This assessment makes Bitcoin even more positioned for investor interest from the institutional and retail side.
In a separate analysis, Matt Hougan, the Chief Investment Officer at Bitwise, mentioned that Bitcoin can reach a six-figure price.
Moreover, this can happen without the U.S. dollar having to collapse drastically.
Hougan’s argument focuses more on Bitcoin’s emergence as a recognized store of value.
It also focuses on the ongoing depreciation of fiat currencies.
According to Hougan, demand for hard assets like Bitcoin will increase as governments (particularly the U.S.) continue to rely on money printing.
These factors and more are expected to boost Bitcoin’s valuation.
According to Hougan, two factors are driving Bitcoin’s price:
These include the maturation of the cryptocurrency as a store of value and the ongoing devaluation of fiat.
The BitWise executive noted that Bitcoin's market cap is only 7-8% of gold's total market value of $18 trillion.
In essence, if Bitcoin were to reach even half of Gold's market cap, its price per coin would easily reach $400,000.
Hougan argued further that if Bitcoins' store-of-value appeal grows globally, its valuation could even reach seven figures.
Increasing geopolitical events mostly fuel the demand for assets like Bitcoin or gold.
Some of these include the Russo-Ukraine tensions and the events in the Middle East.
With gold recently reaching an all-time high of nearly $3,000 per ounce, the appeal of safe-haven assets is clearer than ever.
$100,000 is only the beginning
Source: Twitter
With institutional investors embracing Bitcoin and the regulatory landscape for the cryptocurrency set to change soon in the U.S., analysts believe that the cryptocurrency is ready for the jump to $100,000.
If the positive sentiment persists, Bitcoin might soon go toe-to-toe with mainstream assets like gold.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.