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Bitcoin's Potential Surge to $112,000 Predicted by Experts

Bitcoin’s Potential Surge to $112,000 Predicted by Experts

Bitcoin could rise to $112,000 if the Federal Reserve eases monetary policy, says CryptoQuant.

The leading cryptocurrency could rise to $112,000 within the next one to three months, provided the Federal Reserve eases its monetary policy, according to CryptoQuant.

The market is looking for optimism not only from a reduction in the key rate but also from forecasts on inflation and the pace of monetary policy easing next year.

To reach the $112,000 target, the leading cryptocurrency must overcome two significant barriers:

  • $99,000 — the lower boundary of the realized price range;
  • $102,000 — the annual moving average.

After testing the $99,000 mark, further dynamics will depend on traders’ profit-taking. If selling pressure remains low, the rally will continue.

The main driver of Bitcoin’s growth is the decrease in seller activity, noted CryptoQuant. The daily inflow of coins to exchanges has dropped from 88,000 BTC (November 21) to 21,000 BTC.

The share of deposits from large players fell from 47% to 21%. The average transfer size decreased from 1.1 BTC to 0.7 BTC.

An additional factor, analysts believe, is investor capitulation. Since November 13, large holders have recorded a net loss of $3.2 billion. Historically, the realization of losses indicates an exhaustion of selling pressure and often precedes price increases.

Signal for Bitcoin Accumulation

Bitcoin’s Net Unrealized Profit/Loss (NUPL) ratio has dropped to its lowest level since October 2023, noted analyst Darkfost.

The NUPL metric reflects the difference between market and realized capitalization, allowing for an assessment of investor sentiment and the volume of unrealized profit.

The current ratio stands at 0.39. The expert noted that this level is still above the figures recorded during previous corrections.

Darkfost identified this zone as key for two reasons:

  • investors tend to hold coins as long as they remain profitable;
  • with the overall bullish trend intact, current values are suitable for re-accumulation.

The analyst urged caution. However, the actual picture points to a potential entry opportunity, similar to previous episodes in the current cycle.

“In other words, it’s time to accumulate, not capitulate,” concluded Darkfost.

Ethereum’s Growth Potential

The current rally of the second-largest cryptocurrency by market capitalization differs from previous price surges this year due to low funding rates, noted analyst ShayanMarkets.

During past impulses, funding rates reached peak levels, indicating market participant euphoria and high speculative interest. Such overheating usually coincided with the formation of local highs.

Currently, the situation is different, emphasized ShayanMarkets. Despite the price recovery after falling to $2800, funding rates remain low. The derivatives market does not show the previous activity in using leverage.

The current growth is supported by spot accumulation rather than futures speculation. This divergence suggests that Ethereum lacks aggressive demand to initiate a full-fledged bullish trend. To resume a strong rally, an increase in funding rates is necessary, which would confirm traders’ readiness to participate in the movement.

At present, the subdued backdrop reflects a recovering market, not an overheated one. This leaves room for further growth if demand strengthens. 

However, the expert warned: without an influx of new volumes, the upward momentum may not overcome resistance levels.

As reported, CryptoQuant stated that the trading volume in derivatives reached a historic high, and the market has become overly dependent on speculative capital, making it “mechanically more fragile.”

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