Bitcoin (BTC) is experiencing renewed momentum, gaining nearly 4% on November 27 to trade near $95,000.
This price recovery comes after buyers stepped in to halt a dip toward weekly lows, with the cryptocurrency benefiting from macroeconomic developments in the U.S.
Key Economic Influences
Recent economic data, including jobless claims and the Federal Reserve’s favored inflation gauge—the Personal Consumption Expenditures (PCE) Index—met market expectations. This has increased market confidence in a potential interest rate cut, with the CME Group’s FedWatch Tool estimating a 66% chance of a 0.25% reduction next month.
In response, analysts observed mixed signals. While some highlighted ongoing inflationary pressures, others noted Bitcoin’s resilience in recovering from earlier losses. Increased liquidity in the order books and laddered buyer interest around $85,000 further fueled optimism.
$100K and Beyond
The $100,000 level remains a focal point for market participants. Some see a significant sell wall at this level as a barrier, while others point to technical indicators like the moving average convergence/divergence (MACD), which is flashing bullish signs.
Despite the skepticism of short-term gains, longer-term forecasts remain positive. Analysts project a strong 2025 rally driven by several factors:
Global Money Supply Growth: The M2 money supply has shown a historic correlation with Bitcoin’s price. Jamie Coutts, chief crypto analyst at Real Vision, expects the global M2 supply to increase significantly, potentially driving Bitcoin to over $132,000.
Dollar Weakness: The U.S. Dollar Index (DXY) faces resistance, with potential weakness supporting risk assets like Bitcoin.
Trump Administration: A renewed wave of risk appetite tied to Donald Trump’s recent election victory could create a more favorable regulatory environment for cryptocurrencies.
MicroStrategy’s Impact
MicroStrategy’s continued Bitcoin acquisitions, backed by its latest $3 billion raise, also contribute to the bullish narrative. With plans to purchase over $40 billion in Bitcoin, the firm has completed only 29% of its 12/21 strategy, leaving room for further accumulation.
Growing Adoption
Another bullish signal is Bitcoin’s approach to one million daily active addresses, a milestone not reached since 2019. Increased adoption could further support upward price momentum.
While Bitcoin’s trajectory toward $100,000 faces near-term resistance, its long-term prospects remain promising, underpinned by macroeconomic shifts, institutional buying, and adoption trends.
