Bitcoin could be on its way to $116,000 by the end of this month, and it's not just wishful thinking from crypto enthusiasts. Three macroeconomic factors are aligning to push the king of crypto to a new high, according to Markus Thielen, head of research at 10x Research.
“I think $116,000 is possible,” Thielen boldly stated, pointing to the perfect storm of events that could send Bitcoin to uncharted territory. Now, don’t get too excited just yet. While Bitcoin is currently playing around the top of its range, more upside could be on the horizon. Let's take a look behind the scenes.
1. Increased interest in Bitcoin ETFs
Bitcoin ETFs are looking hotter than ever. With spot Bitcoin ETFs pulling in big money, it’s no surprise that Bitcoin is testing its limits. Sure, the ETF market had a little hiccup this week with its first net outflow after 15 straight days of gains, but that’s hardly a deal-breaker for Bitcoin bulls.
Institutional interest in Bitcoin is growing as these ETF inflows outpace price movements. Let's be real - it isn't just about short-term hype. Instead of just market momentum, Thielen believes the macroeconomic environment drives institutional demand. Bitcoin's next big move could be a result of the shaky US Federal Reserve.
2. The Fed’s Ticking Time Bomb
Thielen also mentions the tension between President Trump and Fed Chair Jerome Powell as a possible catalyst. Trump has made it clear that he’s not a fan of Powell, and that could set the stage for a change in leadership. If a new Fed chair is appointed and leans toward rate cuts, that could send Bitcoin's price skyward. A looser monetary policy? Yes, please.
We’ve seen this before. In the 1970s, political pressure on the Fed led to massive inflation, and Thielen sees similarities in the current climate. It’s a waiting game now – could Trump push for a new chair who’s more Bitcoin-friendly?
3. Shrinking Bitcoin Supply on Exchanges
Now, here’s where things get really interesting. Bitcoin’s supply on crypto exchanges has been steadily declining for 98 straight days, marking the longest drought since 2020. For context, that’s when Bitcoin made its last major bull market breakout. When Bitcoin moves off exchanges, scarcity increases. And when scarcity rises, price tends to follow.
As Thielen puts it, these sustained outflows are historically linked to big price surges. A breakout could be on the way if this trend continues. The pressure is building, and Bitcoin might be on the cusp of something huge.
So, is Bitcoin headed for $116K? If these macro trends continue, Thielen’s prediction might not be so far off. The stars are aligning, and Bitcoin could be gearing up for its next big leap. Buckle up.
Abimbola Adu
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