TL;DR
- Short-Term Dip Expected: Analysts predict Bitcoin may face a significant dip due to tightening on-chain liquidity and declining stablecoin supplies before resuming its bullish trend.
- Long-Term Bullish Outlook: Despite short-term concerns, analysts like Cole Garner and Peter Brandt remain optimistic, with predictions of Bitcoin reaching up to $135,000 by 2025.
- Impact of Bitcoin ETF Options: The anticipated launch of options on Bitcoin ETFs by 2025 could significantly boost the market, contributing to a positive long-term outlook.
Bitcoin may experience a significant dip before resuming its bullish trend, according to recent analyses by prominent crypto analysts. Cole Garner, a well-known figure in the crypto community, has suggested that Bitcoin could face “capitulation” in the near term.
1/ Liquidity on-chain is tightening: I smell capitulation incoming.
A common pre-requisite to full bull.
Lets break this down 🧵👇 pic.twitter.com/E0kXTUyTl7
— Cole Garner (@ColeGarnersTake) October 10, 2024
This prediction is based on tightening on-chain liquidity, which Garner believes could lead to Bitcoin revisiting its long-term range lows. Garner’s analysis highlights the declining supplies of major stablecoins like Tether (USDT) and USD Coin (USDC) as a contributing factor to the short-term downward pressure on Bitcoin’s price.
Despite these concerns, Garner maintains a bullish outlook for Bitcoin in the long term, citing favorable global liquidity trends. He suggests that once central banks take action, liquidity is likely to surge, setting up a “full bull” market scenario.
At the time of writing, Bitcoin (BTC) has dropped by nearly 2% in the last 24 hours, continuing its downward trend, trading at around $60.700, according to data from CoinMarketCap.
Bullish Predictions for 2025
Veteran trader Peter Brandt has also weighed in on Bitcoin’s future, predicting that the cryptocurrency could reach $135,000 by 2025. However, Brandt cautions that a 25% price drop could threaten this forecast.
He emphasizes that if Bitcoin’s price falls below $48,000, the bullish outlook could be compromised. Other analysts, including Keith Alan of Material Indicators, share a cautiously optimistic view, with targets ranging between $125,000 and $130,000.
The Role of Bitcoin ETF Options
Another factor that could influence Bitcoin’s price is the anticipated launch of options on Bitcoin exchange-traded funds (ETFs) by 2025. James Seyffart, an ETF analyst at Bloomberg Intelligence, predicts that these options could provide a significant boost to the market.
The approval process is still pending, but the introduction of regulated Bitcoin options is seen as a monumental step forward for the crypto markets.
Despite the potential for short-term volatility, the overall sentiment among analysts remains positive, with many expecting substantial gains for Bitcoin in the coming years. As retail interest in crypto assets continues to grow, the market is poised for exciting developments.
