Bitcoin has reached a significant milestone, surpassing the $120,000 mark for the first time ever. This achievement comes amid a surge in institutional demand and positive expectations surrounding key US crypto bills. The cryptocurrency’s price increase is also attributed to its growing adoption as a hedge against US budget problems and rising budget deficits.
Institutional Investment Fuels Rally
The recent price surge is largely driven by institutional investors, with BlackRock’s spot Bitcoin ETF, IBIT, reaching a record $83 billion in assets under management. This milestone was achieved in just 200 trading days, significantly faster than the 15 years it took the gold ETF GLD to reach the same volume. IBIT now holds over 700,000 BTC in custody, establishing itself as one of the largest institutional Bitcoin holders.
US Crypto Bills and Regulatory Expectations
The market is also reacting to positive expectations surrounding key crypto bills in the US. Lawmakers are set to discuss the;
– *Digital Asset Market Clarity Act (Clarity Act)*: aims to establish a comprehensive regulatory framework for digital assets and cryptocurrencies
– *Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act)*: seeks to create a legal framework for stablecoins
– *Anti-CBDC Surveillance State Act*: aims to block the issuance of a retail central bank digital currency (CBDC)
These legislative efforts aim to establish regulatory clarity and safeguard financial privacy, potentially positioning the US as a leader in the crypto industry.
Analysts’ Forecasts
Experts expect the upward trend to continue, with predictions ranging from $125,000 to $150,000 in the short term. Some notable forecasts include;
– *Lucas*: predicts movement to the range of $125,000-$128,000 in the near term
– *Jeff May*: believes the price will reach $125,000 within one to two months
– *Eugene Cheung*: thinks the asset could rise to $130,000-$150,000 by the end of the year
– *John Glover*: predicts the price of Bitcoin will reach $136,000 by the end of this year
On-Chain Metrics
Data from the network points to potential further upside, with the NUPL metric for long-term holders at 0.69, below the euphoria threshold of 0.75. Daily Bitcoin transactions have increased to 364,000, but remain below previous market tops. Accumulator addresses now hold 250,000 BTC, the highest level of 2024.
