Bitcoin is once again capturing attention, especially after BlackRock submitted an application for a spot Exchange Traded Fund (ETF). The cryptocurrency is emerging as a potential favorite among institutional investors, particularly with the U.S. national debt nearing a staggering $35 trillion. Analysts, including the well-known Mihir, suggest that Bitcoin could potentially soar to $120,000 if it overcomes its prolonged consolidation phase.
What is Mihir’s Bitcoin Forecast?
Mihir, a prominent crypto analyst, shares that Bitcoin’s price chart showcases a “cup and handle” pattern. This pattern, typically indicating a bullish trend, can result in a significant price rise if the formation completes successfully. A rounded bottom followed by a downward consolidation below a horizontal resistance marks this pattern. Should this resistance turn into support, Mihir believes the cryptocurrency’s price could escalate to $120,000.
Will BlackRock’s Actions Impact Bitcoin?
Yes, BlackRock’s spot ETF filing in June 2023 has elevated Bitcoin’s status in traditional finance circles. The looming fear of a U.S. economic slowdown and a depreciating dollar, coupled with the impending $35 trillion debt, might push institutional investors towards Bitcoin. The recent six-month stagnation in Bitcoin’s price has led to declining spot ETF inflows, but July witnessed an inflow resurgence of $886 million, according to SoSo Value data.
Key insights reveal notable trends:
- Spot Bitcoin ETFs have observed a total net inflow of $17.69 billion since their inception.
- Santiment data suggests increased accumulation by wallets holding 100-1,000 and 10,000-100,000 BTC.
- These wallets are often indicative of professional investor activities, termed “smart money.”
- Historically, Bitcoin’s Q4 performance averages a 98% return, aligning with bullish predictions.
Bitcoin’s outlook is optimistic as the final quarter of the year approaches. Upcoming political events, such as the presidential elections, alongside escalated institutional demand, are anticipated to drive Bitcoin’s price beyond the $100,000 mark. With major investors showing accumulation tendencies, a significant price surge could be on the horizon, according to data from analysts and on-chain metrics.