Real Vision analyst Jamie Coutts believes that Bitcoin (BTC) could reach a six-figure price during the current cycle.
Coutts says that compared to previous bull cycles witnessed in 2017 and 2020, Bitcoin is likely to record diminishing returns this time round.
According to Coutts, Bitcoin rallied by 19X in 2017 and 6X in 2020 but is only likely to go up by between 2X to 3X this cycle.
On how Bitcoin can go up by up to 200% this cycle, the Real Vision analyst says,
“For BTC to meet this target, the US Dollar Index (DXY) would need to be well below 101, prompted by ongoing central bank injections.”
The DXY is a measure of the US dollar’s strength against a basket of other large global currencies. When the DXY is falling, it indicates that the US dollar is weakening against other major currencies and vice versa. The DXY is currently at 102.65.
Coutts also says that his global liquidity model which predicted a 75% rally for Bitcoin in November of 2023 is flashing bullish again.
“The central banks are capitulating, the liquidity spigots are opening, and Bitcoin is about to go much higher.”
According to the Real Vision analyst, the Bank of Japan (BoJ) and the People’s Bank of China (PBoC) have contributed 41% of the global liquidity added over the last month.
“Over the past month; the BoJ and the PBoC have added $400 billion and $97 billion, respectively; the broad global money base (credit) has expanded by $1.2 trillion, which has been significantly aided by a sharp decline of the US dollar. This suggests that it is coordinated with the Federal Reserve’s consent.”
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