Bitcoin Awaits Volatility as $111,000 Price Rally Looms, Says Bitfinex analyst
Bitcoin’s price could surge to $111,000 in the short term, according to Jag Kooner, Head of Derivatives at Bitfinex.macroeconomic factors are creating a fertile ground for such a move.
On Wednesday, Kooner highlighted how a potential U.S.-China trade deal could ease market tensions. this agreement might already be factored into current prices, but it will likely fuel more price fluctuations. The economic climate plays a crucial role in triggering such volatility.
The latest inflation figures also offer clues.Core CPI ticked up 0.1% this month, which Kooner believes could prompt the Federal Reserve to cut interest rates.This shift could reduce real yields and create the right conditions for Bitcoin’s price to soar above $111,000.
Moreover, Kooner notes that Bitcoin’s strong correlation with the S&P 500 (around 0.63) makes it sensitive to broader market movements. If the S&P breaks out of its current trading range, Bitcoin could follow suit, driving its value higher.
Othre key factors contributing to this potential rally include:
- The possibility of a U.S.-China trade deal reducing market uncertainties.
- Low inflation increasing the likelihood of a Fed rate cut.
- The correlation between Bitcoin and stock market indices.
These combined forces could make the coming weeks critical for Bitcoin investors.
