Crypto Analyst Predicts $120000 Bitcoin Price Amid Geopolitical Tensions

Bitcoin Bull

Bitcoin’s price fell by over 13% in the past week, now at around $62,000. Despite this drop, some traders foresee a possible “doomsday rally” for Bitcoin. They think that increasing tensions in the Middle East might boost the cryptocurrency’s price soon.

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Bitcoin emerged after the 2008 financial crisis and has often been viewed as a hedge against geopolitical turmoil. While investors have considered it a risky asset in recent years, its correlation with the Nasdaq has varied, sometimes increasing significantly and decreasing during bullish periods.


Bitcoin Price Predictions Amidst Geopolitical Tensions

Bitcoin is seen as a “doomsday asset” by Edouard Hindi, Chief Investment Officer at Tyr Capital, because it’s now more closely tied to gold. He believes that Bitcoin ETFs are driving a potential rally, with a forecasted surge to $120,000 soon. This prediction comes as tensions rise, especially after Iran’s recent direct attack on Israel.

Meanwhile, other forecasts, like Robert Kiyosaki’s, are even more optimistic, suggesting a price jump to $2.3 million per Bitcoin. These predictions align with a surge in Bitcoin demand, coupled with a decrease in available supply on cryptocurrency exchanges. This imbalance could lead to a supply shock, pushing prices higher.

Shift in Bitcoin Dynamics: Demand Surpasses Supply

Julio Moreno, Head of Research at CryptoQuant, highlights a significant shift in the dynamics of Bitcoin, where demand now outweighs supply. According to CryptoQuant’s data, demand from permanent holders has surpassed issuance for the first time ever.

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Data from CryptoQuant reveals a steady decline in known exchange addresses holding Bitcoin. Currently, these addresses hold approximately 1.94 million BTC, which represents only 9.8% of Bitcoin’s total circulating supply of around 19.67 million coins. This decline contrasts with the peak of 2.85 million BTC seen in July 2021, indicating a trend towards long-term holding strategies among investors rather than active trading.

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The diminishing supply of Bitcoin on exchanges raises the possibility of a potential supply shock in the event of a sudden surge in demand. A supply shock occurs when the available supply of an asset on exchanges decreases sharply while demand increases.


Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

 

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  • Asad

    Asad is a dynamic and talented cryptocurrency content author who brings a wealth of knowledge and enthusiasm to every article. With a deep understanding of blockchain technology and a passion for digital assets, Asad's writing is both informative and engaging.

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