The leading cryptocurrency Bitcoin (BTC) reached the $100,000 mark in its rise that started after Donald Trump’s victory.
However, BTC, which failed to surpass this critical level, experienced a pullback to $90,000 levels last week. BTC recovered after this decline and rose to $96,000 levels again.
While almost the entire market expects Bitcoin to surpass $100,000 before the end of 2024, 10X Research founder Markus Thielen predicted that the price could rise even higher.
Thielen said that Bitcoin exchange balances have reached historic lows, indicating further upward pressure on the price.
Markus Thielen noted in a recent report that Bitcoin balances have reached historic lows.
“This shows that BTC and the crypto market are expected to start growing continuously next year,” Thilen said.
According to the report, long-term investors are holding on tightly to their BTC positions, which restricts the flow of BTC to exchanges and reduces liquidity.
The analyst said that only three major crypto exchanges, including Bitfinex, Binance, and Coinbase, currently indicate that they have sufficient BTC reserves to meet buyer demand, but in contrast, smaller exchanges are having more difficulty maintaining liquidity.
“Furthermore, the recent decline in BTC exchange balances has coincided with increased institutional interest in Bitcoin-related financial products such as spot Bitcoin ETFs.
This increasing demand from both retail and institutional investors and the reduction of exchange balances could lead to higher upward price pressure.”
*This is not investment advice.
