Bitcoin’s price is bouncing around, but things are looking bullish. One analyst, Doctor Profit, has identified four key things that could send Bitcoin soaring past $130,000. Let’s dive in!
A Technical Breakout and a Trade Deal
Bitcoin recently broke through some serious resistance, a long-term hurdle it hadn’t cleared since 2021. This, combined with a new trade deal between the US and the EU, is creating a positive vibe. This deal reduces trade war worries, which is good news for the markets and Bitcoin. Doctor Profit calls this one of the most bullish trade agreements in years.
Whale Watching and ETF Inflows
There was a brief scare when some big Bitcoin holders moved their coins, causing a dip to $114,500. But Doctor Profit says not to worry. Institutional investors are buying up Bitcoin through ETFs (exchange-traded funds) faster than new Bitcoin is being created. And those big holders (whales) are mostly staying put, suggesting they’re still accumulating. The dip was likely just a temporary blip.
M2 Money Supply on the Rise
Bitcoin’s price often follows the growth of the M2 money supply (a measure of money in circulation). Despite talk of tightening monetary policy, M2 is actually up 2.3% this year, with a big jump in May and June. Historically, this kind of growth has been great for Bitcoin. Doctor Profit predicts a 15-17.5% Bitcoin rally to over $130,000 based on this.
The Fed’s Next Move
The Federal Reserve’s next meeting is coming up. While they’re officially still talking tough, Doctor Profit points out that they’ve been quietly increasing the money supply. This could be a sign that they’re getting ready to ease things up again. If this happens, Bitcoin could see a major price boost.