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Trading firm QCP forecasts Bitcoin may hit $120K soon, citing the post-election rally and Trump’s proposed BTC reserve as key supporting factors.
Bitcoin reached a new all-time high of $93,480 this week, pushing the global crypto market cap beyond $3 trillion for the first time since 2021. The rally followed the release of U.S. inflation data, with headline and core inflation meeting expectations at 2.60% and 3.30%, respectively.
Market experts are now pricing in an 82.5% likelihood of a 25 basis point rate cut in the December FOMC meeting. This shift in monetary policy expectations has bolstered optimism across risk assets, with Bitcoin leading the charge.
QCP Projects $120K Bitcoin Target
Commenting on Bitcoin’s impressive performance this week, QCP attributed Bitcoin’s sustained strength to market anticipation of a policy shift under the Trump administration, including proposals for a strategic Bitcoin reserve.
The firm suggested that a rotation from gold to Bitcoin could provide a new narrative to support the asset’s valuation. QCP believes the $100,000 to $120,000 price range may not be too far off following the post-election rally.
QCP: In view of Bitcoin’s impressive rally since the US election, our view is that $100,000 – $120,000 may not be too far off. Trump idea of launching a strategic BTC reserve and rotation from Gold to BTC, provides a strong narrative that keeps BTC prices supported.…
— Wu Blockchain (@WuBlockchain) November 15, 2024
In addition, QCP also raised concerns about excessive leverage, particularly in altcoins. The firm reported that perpetual funding rates have surged to levels between 50% and 100%, driven by heavy leveraged buying. This heightened leverage amplifies the risk of a potential market-wide deleveraging event, which could exert significant downward pressure on prices.
More Bullish Outlooks for Bitcoin
In a separate analysis, VanEck’s Head of Digital Asset Research, Matthew Sigel, expressed optimism about Bitcoin’s future price trajectory. Sigel noted parallels between the current rally and Bitcoin’s performance in the 2020-2021 cycle, where the asset doubled in value post-election.
Since the latest U.S. election, Bitcoin has surged over 30%, with VanEck’s proprietary indicators suggesting continued upward momentum.
Sigel also pointed to a potential shift in government sentiment towards Bitcoin, emphasizing the pro-Bitcoin stance of key figures in Trump’s cabinet. Based on these developments, VanEck projects Bitcoin could reach $180,000 by the end of this market cycle, potentially by next year.
Similarly, market analyst Rekt Capital highlighted Bitcoin’s entry into a “parabolic upside” phase. Drawing from historical trends, he suggested this phase could last up to 385 days, indicating substantial room for further gains.
According to his analysis, Bitcoin is only in the early stages of this rally, supported by data from previous bull cycles.