Bitcoin Surges to New High, Eyes $120,000 with Institutional Interest
The MVRV Z-Score's current level suggests that Bitcoin has not yet reached the extremes seen at previous market tops, leaving room for potential growth. With the crypto market's recent liquidations and the Fed's dovish stance, the stage is set for Bitcoin's continued rally, as investors and experts watch closely for the next move.
Bitcoin has reached a new all-time high of $112,022, driven by increasing institutional interest and fueled by dovish Fed minutes, sparking predictions of a potential rally to $120,000-$130,000 by 2025. The surge is attributed to companies like Trump Media & Technology Group and GameStop announcing plans to purchase the cryptocurrency, despite caution from experts about macroeconomic factors impacting its sustainability.
Market expert Doctor Profit predicts two potential scenarios for Bitcoin's future: a temporary dip to $92,000-$93,000 before rebounding, or a surge past $113,000-$114,000 without revisiting lower levels. On-chain data, including the MVRV Z-Score, suggests that the rally may not be over yet, with the current score of 2.4 indicating significant potential for further upside compared to previous cycles.
The crypto market has seen over $500 million in liquidations across leveraged positions in the past 24 hours, with major altcoins such as ETH, SOL, XRP, and ADA following Bitcoin's lead. The Fed's dovish minutes triggered a risk-on sentiment, supporting the price rally in cryptos, with 87.9% of positions being short. CoinGlass data shows 115,929 traders were liquidated, resulting in a total liquidation value of $533.20 million.
As Bitcoin attempts to establish a new support floor, its potential for further growth remains a topic of interest among investors and experts alike. With institutional interest on the rise and on-chain data indicating room for further upside, the cryptocurrency's future looks promising, despite potential macroeconomic challenges ahead.