Bitcoin’s next stop could be $125K: Here’s why

Bitcoin is nearing a significant price point, having touched $121,000 recently, the highest in seven weeks, raising hopes for a rise to $125,000. Recent events saw over $313 million in bearish Bitcoin futures positions liquidated, indicating the potential for a short squeeze. Unlike mid-August's circumstances, when Bitcoin reached $124,000, current market conditions appear more favorable due to lower inflation fears and a supportive gold market. Central banks are accumulating gold, further leading investors towards Bitcoin as an alternative in light of reduced inflation risks and anticipated interest rate cuts by the US Federal Reserve. Furthermore, Bitcoin derivatives indicate a shift from equilibrium to a slight fright of corrections, with sell options rising in premiums. Notably, labor market weaknesses, cited by Federal Reserve Vice Chair Philip Jefferson, may drive traders to consider Bitcoin and gold as safe investment alternatives. With mounting confidence in the US Fed's policy direction and steady gold prices, Bitcoin’s ascent towards higher valuations looks increasingly viable.

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