Originally published on: November 30, 2024
Bitcoin is currently in a “parabolic phase” of the market cycle, with analysts predicting a local top of over $110,000 by the end of January. This projection is based on the Global Macro Investor’s Total Liquidity Index, which provides insight into major central bank balance sheets.
According to Raoul Pal, the founder of Global Macro Investor, the $110,000 price target represents a local top for the current Bitcoin cycle. He expects Bitcoin to peak near this price in January 2025 before experiencing a temporary correction below $70,000 in February of the same year.
The relationship between Bitcoin price and liquidity index suggests that Bitcoin could absorb up to 10% of the newly printed money supply, potentially attracting $2 trillion in new investments by 2025. With growing money supply acting as a catalyst for Bitcoin price, experts like Alvin Kan from Bitget Wallet foresee significant upside potential for the cryptocurrency.
Analysts also anticipate a surge in global liquidity at the end of January 2026, further fueling the 2025 crypto rally. Given the current market conditions and historical trends, Bitcoin has transitioned into a parabolic upside phase, setting the stage for a potential price surge to over $132,000 next year.
Moreover, recent events like Donald Trump’s victory in the US presidential election have boosted risk appetite in the market, paving the way for continued growth in the cryptocurrency sector. If the Trump administration approves a strategic Bitcoin reserve, Bitcoin could even reach $1 million, according to industry experts.
As Bitcoin continues on its upward trajectory, investors are closely monitoring market developments and gearing up for a potential explosion in value post $100,000. Stay informed with the latest updates and analyses to make well-informed investment decisions in the ever-evolving crypto landscape.
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