Bitcoin rise above $87,700 on Monday after the US dollar dropped to its lowest since March 2022. Experts are now predicting that Bitcoin will soon cross the $100,000 barrier. The tremendous change to the landscape of finance indicates that the global investment strategies may be changing as well.

Key-Takeaways:

• Bitcoin rises $87,700 as the US dollar falls to a new low since early 2022; experts say bitcoin will hit $100,000 very soon.
• The buybacks from the US Treasury, said Arthur Hayes, could be a ‘bazooka’ into Bitcoin’s price.
• The Japanese and UK institutional investors continue investing greatly even when the market is volatile.
• Trump’s calls to get rid of Federal Reserve Chair Jerome Powell could result in rate cuts, and Bitcoin will likely benefit.

The Perfect Storm for Bitcoin’s Rise

Ideal conditions for Bitcoin rises have been created by several factors. The first reason is that the weak US dollar has sent investors to alternate assets. The US Treasury also intends to start to repurchase its own debt, thereby injecting more liquidity into markets. Finally, there is still growing institutional interest around the world, promoting the adoption of crypto.

BitMEX co-founder Arthur Hayes said that if Bitcoin does break $100,000, this possibly could be the ‘last chance’ for buyers to procure BTC below $100,000. Treasury buybacks were described by him as a ‘bazooka’ for prices of Bitcoin. Regardless, these buybacks would free up huge amounts of liquidity in the markets at a time when prices are already very high.

That bullish outlook is supported by technical indicators. Bitget Research’s Ryan Lee noticed that Bitcoin’s chart pattern had made a ‘descending wedge breakout.’ It usually precedes a strong upward price movement. As Bitcoin continues to correlate increasingly with gold, whose value has nearly tripled this year, it is clear it is a hedge against inflation.

Institutional Support Growing Despite Volatility

If you look at it, the market has shown its fluctuations, yet the Japanese and UK investment firms keep pouring in a lot of money into cryptocurrency. It is a clear sign of confidence in Bitcoin’s long-term value proposition, as it has also continued to sustain international interest. Stability during a market’s uncertainty and legitimacy as an asset class are provided by institutional backing.

Analysts are still bullish on the future of Bitcoin as it draws close to the $90,000 resistance level. By year-end, according to Jamie Coutts of Real Vision, Bitcoin could see performance levels of $132,000. Timothy Peterson, an economist, reckons along similar lines of a rise to $138,000 in three months, due to the historical market patterns.

Political Pressures Adding to Dollar Weakness

President Trump’s recent calls to demote Federal Reserve Chair Jerome Powell have now made the situation even murkier. The increased statements have put expectations on potential rate cuts. A further weakening of the dollar would result if lower interest rates were to be achieved, which would also work to Bitcoin’s rally.

With all the pressure on the political level and the development of macroeconomics, the Bitcoin environment is good now. This is because traditional currencies are becoming uncertain, which makes cryptocurrencies an alternative way to store value. This change in perception is only attracting retail as well as institutional investors.

Not all analysts are as high as the extremely bullish outlook. However, Michaël van de Poppe warned that price rallies on the weekend can mislead investors. According to him, Bitcoin might see a dip before the significant resistance levels of $91,000 are broken. However, the overall positive trend still continues, and such reversals remain possible in the short term.

Conclusion: Bitcoin Rises

With the potential that Bitcoin rises and reaches about $100,000, retail and institutional investors are both watching these things develop. The market argues that there is still growth potential for those thinking about investing in cryptocurrency. Like any investment, knowledge of risks must still exist. Only with the combination of weakening fiat currencies, institutional support, and even potential Treasury actions are we in such a unique market environment.