Bitcoin Blasts Past $99K: What Happens Next?
Outlook on Bitcoin amid Fed's lower interest rates: Could BTC reach $200K by December 2025?
Bitcoin, the world's leading cryptocurrency, rushed to an impressive $99K on the 8th of May during the Asian trading session. This surge extended its recovery from April lows by a whopping 32%. The rally came just hours after the Federal Reserve decided to keep interest rates frozen.
Backing its decision, the Fed announced that the labor market was rock-solid but inflation was still proving stubborn.
"The unemployment rate has remained stable at a low level in recent months, and labor market conditions remain robust. Inflation is persistently elevated."
$100K as a Leaping Pad
With the BTC price breaking the $100K barrier, most experts now anticipate more Federal Reserve rate cuts during Q3 2025, a move that could fuel market optimism and Bitcoin's continued ascent. In an email to AMBcrypto, Matt Mena, Crypto Research Strategist at 21Shares, echoed this outlook.
Mena stated, "If BTC possesses the guts to shatter the $100,000 ceiling, it might retest its all-time high at $108,500, and if global and domestic adoption intensifies, Bitcoin could breach the $200,000 barrier by the end of the year."
Mena pointed out that U.S.-China trade discussions and the growing acceptance of Bitcoin by nation-states could further amplify the asset's value.
Astonishingly, Mena also highlighted the growing popularity of BTC among investors over gold, following the dominance of BlackRock's Bitcoin ETF (IBIT) in year-to-date (YTD) flows over the most popular gold ETF.
In essence, Bitcoin's price could escalate in low-interest-rate scenarios.
Notably, U.S. investors have driven the recent recovery, as evidenced by the Coinbase Premium Index remaining quite positive for the past fortnight.
In the last week, U.S. spot Bitcoin ETFs have attracted inflows worth $2 billion, pushing YTD inflows beyond $5B. Moreover, key upside liquidity pockets for BTC stood at $98K, $100K, and $106K, potentially serving as major price magnets.
On the downside, potential support levels in case of a pullback could be found at $93K and $83K due to the presence of liquidity zones at those levels.
In short, Bitcoin could capitalize on more favorable macroeconomic updates, particularly U.S.-China trade talks in the immediate term. However, if Fed rate cuts materialize in Q3 2025, as projected by analysts like Matt Mena, the mid-term could also appear positive for Bitcoin.
- "The surging Bitcoin price, having broken the $100K barrier, might lead to more Federal Reserve rate cuts during Q3 2025, potentially fueling market optimism and Bitcoin's continued ascent, as suggested by Matt Mena, Crypto Research Strategist at 21Shares."
- "If Bitcoin manages to shatter the $100,000 ceiling, as Mena anticipates, it could retest its all-time high at $108,500, and if global and domestic adoption intensifies, Bitcoin could breach the $200,000 barrier by the end of the year, according to Mena."
- "Following the dominance of BlackRock's Bitcoin ETF (IBIT) in year-to-date (YTD) flows over the most popular gold ETF, the growing popularity of BTC among investors could further amplify the asset's value, as highlighted by Mena."
