Analyst Lists 5 Key Reasons Why Bitcoin Price May Hit All Time High

Bitcoin price has been on a steady rise throughout 2024, with multiple indicators suggesting a possible continuation of this upward trend as per crypto analysts Michael Van De Pope.

The crypto analyst, as a result, has disclosed five critical reasons why it might be soon the time for the price of Bitcoin to hit its all-time high. His analysis includes technical indicators and external market factors that are creating the stage for Bitcoin’s next big rally.

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  Federal Reserve Rate Cuts and Economic Sentiment

According to Michael Van De Pope, a key reason for Bitcoin’s recent price momentum has been the growing probability of the Federal Reserve cutting interest rates. Consequently, there has been a growing risk-on sentiment among investors as the market prices in the potential rate reductions. With their interest in alternative assets like Bitcoin, this economic outlook has made riskier investments more attractive, in general, considering weak interest rates. 

Van De Pope notes that expectations around Federal Reserve decisions have been a critical driver of recent BTC price increases, with more liquidity potentially entering the market.

Besides the Fed, Van De Pope also notes that other macroeconomic factors such as robust Wall Street earnings and rising crowd confidence are helping Bitcoin surge higher. According to him, if the economy continues on a positive trajectory, the value of BTC could continue to rise even further.

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  Whale Accumulation Points to Institutional Confidence

Another bullish signal is the surge of whale activity in the Bitcoin market recently. According to on-chain analytics, the rate of accumulation of BTC by large holders (known as ‘whales’) has been accelerating since mid 2024. 

Van De Pope notes that the same patterns of whale accumulation were present before previous Bitcoin bull runs, particularly before the 2020-2021 run in which prices hit new all-time highs.

Crypto whales have a habit of hoarding, which takes place during periods of price consolidation, a sign of them having faith in a future price rise. In most cases, this accumulation is followed by great price movements because large holders are positioning themselves ahead of anticipated up movements. Van De Pope points this out as one of the most dependable signs of another huge Bitcoin breakout.

• Indicators Signal Imminent Bitcoin Price Breakout

From the crypto analyst’s technical analysis, Bitcoin is showing strong signs of an imminent breakout. Van De Pope points to Bitcoin’s price action on the two-month logarithmic chart, which closely mirrors past bullish cycles.

Historical patterns indicate that Bitcoin often consolidates for extended periods before a sharp and rapid rally begins, following a parabolic trajectory.

Michael Van De Pope adds that Bitcoin’s current price movement aligns with previous bull market cycles seen in 2012, 2017, and 2020. He believes that if Bitcoin can sustain its position above key resistance levels—such as $65,000—this could trigger a move toward new all-time highs. His analysis also suggests that Bitcoin could surpass $100,000 in 2025, based on the continuation of these patterns.

• Declining Stablecoin Dominance

A noticeable decline in stablecoin dominance is another factor that Van De Pope believes could fuel BTC’s rise. Stablecoin dominance has been gradually decreasing since the middle of 2024, indicating that investors are moving capital out of stablecoins and into more volatile assets like BTC. 

Historically, this trend has signaled the beginning of a broader market rally, as more liquidity flows into Bitcoin and other cryptocurrencies.

Michael Van De Pope argues that the declining use of stablecoins shows a growing appetite for risk among investors, which often coincides with a shift toward assets like Bitcoin. This shift suggests that market participants are positioning themselves for potential price increases, anticipating that BTC will appreciate further against the US dollar.

• Bitcoin ETF and Institutional Adoption

Another major catalyst that Van De Pope points to is the approval of Bitcoin ETFs on the New York Stock Exchange (NYSE). This new financial product allows institutional investors to gain exposure to BTC through a regulated vehicle, increasing market accessibility and liquidity.

The crypto analyst notes that the approval of BTC ETFs has historically boosted demand and helped propel Bitcoin prices higher.

With Bitcoin price currently trading only 7.5% below its all-time high, the increased liquidity from ETF inflows could provide the final push needed for Bitcoin to break through previous price barriers. The introduction of more financial products tied to Bitcoin is expected to attract institutional interest, which could further support the asset’s long-term price growth.