Analyst Identifies Key Condition for Bitcoin to Reach $100,000 in 2024

Bitcoin’s path to a $100,000 valuation hinges on a single factor tied to the U.S. Federal Reserve. This was stated by Timothy Peterson, an analyst at Cane Island Alternative Advisors, in an interview with Cointelegraph. 

“The yield on U.S. high-yield speculative-grade bonds serves as an excellent indicator. It actually needs to fall below 6% or 7% for Bitcoin to begin a steady climb to a record high,” he explained. 

According to YCharts, the current figure stands at 7.54%.

Peterson believes that if yields fall to the specified range, Bitcoin will rise to $100,000 in the fourth quarter of 2024 or the first quarter of 2025. 

Interest rates are seen as a crucial indicator for crypto traders, as their decline typically leads to reduced returns for investors in traditional securities. 

The expert notes that markets are generally “stable and volatile” from September to October. However, this time “uncertainty” may arise due to the U.S. presidential elections in early November.

Meanwhile, trader Scott Melker stated that a reduction in Federal Reserve rates is not always beneficial for assets beyond fixed-income investments.

Everyone seemingly wants the Fed to cut rates.

There is a wildly popular theory that a Fed pivot is good for markets.

It is patently FALSE.

After the Fed pivot to rate cuts, the market almost ALWAYS crashes/corrects.

Rate cuts generally precede major dips.

Let’s look at… pic.twitter.com/Hu1rzghBBM

— The Wolf Of All Streets (@scottmelker) May 14, 2024

“There is an extremely popular theory that a Fed policy pivot is good for markets. This is patently false. After rate cuts, the market almost always experiences a crash/correction,” he added. 

Previously, Galaxy Digital CEO Mike Novogratz predicted Bitcoin would rise to $75,000 by the end of June. According to him, the coin is currently in a consolidation phase with a lower boundary at $55,000. 

Earlier, FxPro trader Alex Kuptsikevich warned of the risk of panic selling if Bitcoin falls below $60,000. On the other hand, a breakthrough above $65,000 would signal a return to bullish sentiment, the expert believes.