Bitcoin Could Reach $120K Due to ‘Doomsday Rally,’ Predicts Trader

Bitcoin Price prediction
Bitcoin Price prediction: Some analysts suggest that geopolitical tensions may lead investors to allocate funds to alternative assets like bitcoin.

There’s speculation among traders that international political turmoil and the pursuit of investment protection could drive a surge in bitcoin (BTC) value in the near future, despite a recent 10% weekly drop denting confidence in the leading cryptocurrency.

Bitcoin has long been considered a potential hedge against geopolitical uncertainty, originating in the aftermath of the 2008 financial crisis. Some traders argue that this narrative of hedging remains relevant even though BTC has been closely correlated with traditional market assets for some time now.

“Bitcoin continues to serve as a viable doomsday asset in 2024, especially as its correlation with gold has recently strengthened, and investors are increasingly diversifying away from conventional financial assets,” remarked Edouard Hindi, Chief Investment Officer at Tyr Capital, in an email to CoinDesk.

Hindi added, “The current Doomsday rally is being led by the ETF, and we can anticipate reaching $120,000 in the coming months as global geopolitical tensions escalate and middle-class investors seek ways to safeguard their wealth.”

Over the weekend, cryptocurrency markets took a hit amid escalating tensions between Iran and Israel, coupled with profit-taking activities ahead of the bitcoin reward halving—a technical event slated for April 20, which will halve network rewards.

Several major tokens experienced losses of up to 18% over the weekend compared to their peak prices from the previous week. However, some of these losses were recouped on Monday. The downward trend resumed during Asian morning hours on Tuesday, as Israel deliberated its response to Iran’s launch of over 300 drones and missiles at its territory.

Meanwhile, inflows to bitcoin exchange-traded funds (ETFs) have slowed down in the past week. Data indicates that only one product, BlackRock’s IBIT, saw inflows on Monday, while 10 other ETFs experienced outflows.

Certain market observers suggest that bitcoin’s short-term price movements will dictate the trajectory of the broader crypto market in the coming weeks.

Alex Kuptsikevich, a senior market analyst at FxPro, commented in a daily note, “The sell-off in US stock markets dampened global risk appetite late on Monday, reversing initial optimism. The market is currently close to the lows it experienced in March.

This is a pivotal moment in determining the market’s direction for the upcoming weeks. A rebound from this level would imply expectations of an early recovery to recent highs. Conversely, a dip below could trigger a broader sell-off of positions.”

Also Read: UK Plans Legislation for Stablecoins and Crypto Staking This Summer

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