Yesterday, Bitcoin (BTC) saw a record price surge on CoinMarketCap, a popular crypto information aggregator. The crypto giant reached an all-time high of $76,460.15, surpassing the previous day’s high of $75,300. This continued increase in price is a significant milestone for Bitcoin, considering the previous cycle’s peak was approximately $69,000 in November 2021.
The timing of this surge is crucial as it comes shortly after the 2024 U.S. Presidential elections. Historically, a period of a bullish market tends to follow these elections, lasting about 12 months. This recent surge might indicate the start of another bull run, suggesting that further historical highs may be on the horizon.
In the wake of the 2024 U.S. elections, potential FOMO – Fear Of Missing Out – seems imminent. This common phenomenon in financial markets drives investors and speculators to acquire assets as rapidly as possible to avoid missing out on potential gains.
If Bitcoin continues its upward trajectory for a third consecutive day, there is scope for FOMO to be triggered, leading to significant capital inflow into BTC. However, whether this will occur remains uncertain.
Predictions about Bitcoin’s future valuation remain speculative, primarily due to the uncertainty surrounding the potential onset of FOMO and the duration of the ensuing bull run. Nonetheless, an increasingly popular hypothesis suggests that Bitcoin could potentially reach the $100,000 mark by the end of 2024 or early 2025.
This prediction rests on the occurrence of FOMO and further assumes a possible market correction in November, followed by another surge in December. While the certainty of FOMO is elusive, if it does occur, the scenario to watch would indeed be the $100,000 mark.
However, the value of the U.S. dollar (USD) cannot be overlooked. Bitcoin often displays an inverse correlation with the Dollar Index in the medium to long term. Yesterday, the Dollar Index reached highs above 105 points, but it has since dropped to 104.7 points.
If the Dollar Index were to drop further to around 100 points or below, it could positively impact Bitcoin’s price trend. A further drop to 90 points in 2025 could potentially propel Bitcoin well beyond the $100,000 mark.
While Bitcoin has shown a propensity to disregard other market fluctuations, this could change if FOMO were to be short-lived. Therefore, the performance of the Dollar Index in the coming months may play a pivotal role in Bitcoin’s price trajectory.
