Bitcoin has caused quite a bit of positive mayhem in the cryptocurrency market after reaching historic heights and finally passing a $100,000 per coin valuation. Despite a relatively weak start at the beginning of the year, the world’s most valuable coin has solidified its lead by a very wide margin. However, analysts still say Bitcoin’s impressive price surge is only just starting.
🚨 $BTC officially hits $100,000 🚀#Bitcoin #bitcoin100k pic.twitter.com/fj6a5wryiY
— John ProV1 👨💻 (@JohnProv1) December 5, 2024
Sean Dawson, head of research at the DeFi derivatives protocol Derive, has pointed to an even bigger future for Bitcoin’s already unbelievable prices. Dawson believes there is a slight chance of Bitcoin seeing even further growth in the first month of the incoming year.
The research boss mentioned in an interview, “We continue to see a 10.5% probability of Ethereum reaching $6,000 and a 6% likelihood for Bitcoin surpassing $150,000 by January 31.”
Analysis: 25 delta skew indicator remains stable, Bitcoin is expected to rise further next month
— Bpay News (@bpaynews) December 9, 2024
Sean Dawson, head of research at DeFi derivatives protocol Derive, said that the derivatives market data showed that following Bitcoin's historic breakthrough of $100,000 last week…
He also touched on the 25 delta skews, which measure the markets' bias toward calls and puts, saying, “Regarding the 25 delta skews, they've remained stable since last week, showing no significant shifts... It appears the market has consolidated its position over the weekend.” Stability in the 25 delta skew means traders expect no significant shift in the coin’s price direction or risk.
This data follows Bitcoin’s surprise dip to an eight-day low just 12 hours after it surpassed a $100,000 valuation on Wednesday. However, the coin has since been restored closer to its record-breaking position. At the time of this writing, it now sits at $98,08 per coin on CoinMarketCap.
Explaining Bitcoin’s current price situation, Dawson stated, “The weekend usually results in quieter markets and subdued price movements." He also said that weekend trading “tends to reduce volatility.”
In addition to the weekend factors, Dawson also named the flows recorded from MicroStrategy and Blackrock’s IBIT as options as potential causes for the slight cooling off of Bitcoin’s red-hot prices.
Bitcoin has generally been on a good trend since the announcement of the United States presidential election results. There has been increased retail and institutional interest in the coin after Trump’s victory in hopes of a crypto-friendly administration.
Trump has made various promises to the crypto industry, including establishing a strategic Bitcoin reserve in the United States, firing current SEC chair Gary Gensler (the new Chainman of SEC is Paul Atkins,) and protecting the interests of domestic crypto mining firms and other firms offering crypto-related services.
As the year slowly ends, it seems Bitcoin is not the only winner. Bitcoin ETFs are also doing well. Reports posted by many Bitcoin ETF issuers show positive growth, with BlackRock rising to become the world’s fastest fund to reach $50 billion in assets under management. While a $150,000 valuation seems almost impossible within that time frame, Bitcoin holders hope it comes true as soon as possible.
Richard Adrian
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice of this sort, HODL FM strongly recommends contacting a qualified industry professional.
