- Bitcoin (BTC) makes an impressive run into $110k following the rising Institutional interest and dropping centralised exchange reserves.
- An analyst has predicted that the asset could peak at $150k this year, and subsequently hit $250k.
Bitcoin (BTC) reverses its bearish momentum, printing gains against all major assets to hit $110.5k on its daily price chart.
According to our market data, the asset was trading at $105k, sitting above a crucial support level before staging this move. At press time, it was still up by 3.5% in the last 24 hours, 3.8% in the last seven days, 5.4% in the last 30 days, 34% in the last 90 days, and 16% from year to date.
Bitcoin’s impressive comeback is massively supported by the 24-hour trading volume which has surged by 50% with $58.5 billion changing hands. As mentioned in our last analysis, Bitcoin was tipped to positively react to the falling exchange reserve, which had plunged below 2.5 million BTC as of late May.
The ongoing market trend has also been triggered by the rising Institutional demand led by MicroStrategy and Metaplanet. As indicated in our earlier discussion, MicroStrategy added an impressive amount of 7,390 BTC to its portfolio in May to push its total holdings to 576,230 BTC. In the long run, the company is seeking to reach a historic purchase of staggering $84 billion worth of Bitcoin, as also noted in our recent news coverage.
New US Self-Custody Right Fueling Bitcoin Growth?
On June 9, the Chair of the US Securities and Exchange Commission (SEC) Paul Atkins had an extensive discussion with the Crypto Task Force Roundtable in Washington D.C. According to the information reaching us, the discussion primarily focused on Decentralised Finance (DeFi). Specifically, there were talks on self-custody rights and regulatory clarity.
In his submission, Atkins stressed the importance of retaining control over digital assets and how this aligns with the foundation of American values. Above all, he pointed out why the outdated regulatory framework should be rejected. To him, this stifles growth and innovation.
I am in favour of affording greater flexibility to market participants to self-custody crypto assets, especially where intermediation imposes unnecessary transaction costs or restricts the ability to engage in staking and other on-chain activities.
With this happening, global entities are reported to be settling on the right reasons to engage in the asset class on a large scale without the fear of facing serious legal consequences. As detailed in our previous blog post, Japanese Investment firm Metaplanet has declared its willingness to expand its Bitcoin position by raising $50 million through a “private placement of zero-interest bonds.”
In the future, Bitcoin is expected to react to these massive demands by rising to an unimaginable level. As reviewed by CNF, Head of Research at digital asset management CoinShares, James Butterfill, predicts that Bitcoin could hit $250k. However, he does not think this could happen in 2025. According to him, Bitcoin could peak at $150k this year.
Timing of this is very difficult though, and I don’t expect this to occur in 2025, but it will head in that direction.
