- Bitcoin looks poised for a “wild ride,” analyst says.
- Spot ETFs see biggest single-day inflows since July.
- Fed meeting next week looms as next big catalyst.
Bitcoin is thundering towards $250,000 as investors poured $757 million US spot Bitcoin exchange-traded funds on Wednesday — the largest single-day haul since July.
That’s according to Sean Dawson, head of research at Derive, who said he expects Bitcoin to hit $140,000 by year-end, “with $200,000 as a conservative cycle top and even $250,000 possible if institutional flows persist.”
“The bull-run is well and truly underway,” Dawson said in a note to investors. “Buckle up, because we’re in for a wild ride of violent price action, generational wins and a market set to rip to all-time highs.”
The comments come on the back of Fundstrat Global Advisors head of research Tom Lee telling CNBC that he predicts Bitcoin “can easily get to $200,000 before the end of the year.”
The ballooning forecasts come as institutional demand for crypto is accelerating ahead of the Federal Reserve’s September 17 meeting where US policymakers are widely expected to slash interest rates.
Lower interest rates usually incentivises investors to bet on risk-on assets like cryptocurrencies, which tend to pump their prices.
Dawson pointed to dovish Fed policy, aligned political support from the Trump administration, and the rise of digital asset treasuries creating “the strongest tailwinds the industry has seen in years.”
Crypto treasuries have emerged as leverage engines of the cycle. By issuing debt and buying crypto, they create a reflexive flywheel for price action, Dawson said.
To be sure, other analysts have warned that some of the firms attempting to emulate Strategy’s Bitcoin-buying strategy are at risk of falling short of expectations, with their stock trading below the value of the digital asset they’ve bought.
If they keep trading below that line, they may have to sell their assets, which could push down crypto prices.
Still, businesses are still bulking up their crypto hauls.
On Wednesday, Metaplanet, a Tokyo-listed Bitcoin corporate treasury firm, confirmed an almost $1.5 billion international share offering, with just under $1.3 billion earmarked to buy Bitcoin directly.
The firm already holds 20,000 Bitcoin and says its strategy is designed to hedge against Japan’s ballooning debt, negative real rates, and a weakening yen.
Crypto market movers
- Bitcoin is up 1.3% over the past 24 hours to trade at $114,200.
- Ethereum is up 2.5% over the past 24 hours trading at $4,431.
What we’re reading
- Investor deposits in DeFi lending soars to $130bn all-time high. Here are the major players — DL News
- Gearbox deposits recover from 80% crash as users pour $250m into new lending market— DL News
- Cboe Plans to Launch Continuous BTC and ETH Futures Trading — Unchained
- Why Galaxy Might Be the Most Undervalued Crypto x AI Stock w/ Duncan — Milk Road
- Ark Invest offloads $5m Robinhood stock in profit-taking move to invest in Tom Lee’s BitMine— DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email at lance@dlnews.com.
