Bitcoin has reached a new all-time high, briefly trading at $99,500 during Friday’s intraday session before pulling back slightly. As of now, the cryptocurrency is priced at $98,675.
With heightened trading activity as the market anticipates a breakthrough above the $100,000 psychological level, digital asset research firm 10X Research predicts Bitcoin could climb to $115,000 by Christmas.
Why Bitcoin May Touch $115,000 Soon
In its new report, 10X Research found that the BTC market has become flush with liquidity in the past few weeks, a key factor that could drive Bitcoin toward the projected $115,000 mark.
Stablecoin issuer Tether minted $10 billion in the past month. Also, Circle added $3 billion during the same period, fueling market momentum. This has resulted in a corresponding uptick in stablecoin flows to cryptocurrency exchanges over the past month. In a November 21 post on X, Leon Waidmann, head of research at The Onchain Foundation, confirmed this.
“Stablecoin inflows to exchanges hit $9.7B in 30 days! The LARGEST monthly inflow EVER. Stablecoin liquidity is back. Speculative demand continues to explode,” he said.
Stablecoin Net Inflows to Exchanges. Source: X
The surge in stablecoin inflows to cryptocurrency exchanges is a bullish signal. This influx often leads to increased buying pressure, driving the values of crypto assets upward.
“This massive wave of liquidity is reflected in elevated trading volumes, with spot volumes consistently exceeding $200 billion daily. The cryptocurrency market capitalization has surged past $3.2 trillion, equaling the size of the United Kingdom’s equity market,” 10X Research wrote.
Traders’ activity in the BlackRock Bitcoin ETF (IBIT) options market is another reason its price may climb to $115,000 by Christmas. 10X Research found that as of November 22, call options on IBIT outnumber puts by 5.5 to 1, rising from 3.8 to 1 on Thursday. Call buyers are also targeting strike prices in the 110-120% range, suggesting that they expect Bitcoin’s price to rally beyond $100,000 soon.
“Call buyers focus on strike prices in the 110-120% range, indicating they do not anticipate a short-term cap at Bitcoin’s psychological $100,000 level. Instead, December-expiry options activity suggests expectations for Bitcoin to rally towards $105,000 or even $115,000 by Christmas, with the latter strike showing the highest open interest,” the report stated.
BTC Price Prediction: All Rests With the Buyers Now
According to the research firm, “this dynamic could trigger a minor gamma squeeze, causing Bitcoin’s price to gravitate toward these levels. As a result, $100,000 may only be another checkpoint on Bitcoin’s upward trajectory.”
BTC is currently trading at $98,675. Sustained buying momentum could push the coin back to its all-time high of $99,500 and potentially beyond. Establishing this level as support may pave the way for a surge toward $100,000 and higher.
Bitcoin Price Analysis. Source: TradingView
On the other hand, if buying pressure weakens, BTC’s price may plunge toward $88,816, where its next major support lies. This will invalidate the bullish outlook above.
