Bitcoin Rise: Is $140,000 Possible?

Bitcoin Holds at $122,000

Bitcoin is trading at $122,000 on Wednesday in Asia after reaching a record high of $126,200 earlier this week. Market observers maintain expectations of reaching a new peak of $140,000 this month.

Economists' Analysis

Economist Timothy Peterson stated in a recent remark that Bitcoin has a 50% chance of closing October above $140,000. This prediction, based on simulations of 10-year data, offers a promising scenario for investors.

Market Dynamics and Demand

Despite recent fluctuations, institutional demand and decreasing balances on centralized exchanges continue to support Bitcoin's price. Currently, exchange balances have dropped to 2.83 million Bitcoin, the lowest level in six years. Over the past month, 170,000 Bitcoin have been withdrawn.

Maintaining this balance, alongside institutional purchases and decreasing supply, is keeping price declines shallow. Exchange Traded Funds (ETF) listed in the United States have seen an increase of over $60 billion since January 2024. Last week, the second-largest weekly inflow occurred with an influx of $3.2 billion.

Economic Uncertainty and Risks

Some analysts warn that surprises from the Federal Reserve could impact the market. Nick Ruck, director of LVRG Research, noted that the crypto market maintains a delicate balance between significant technical support and macroeconomic uncertainty. Investors are struggling to make new allocations in the absence of new economic data.

Market Reaction and Future Expectations

In the last 24 hours, Bitcoin's rally has slowed down to take profits. Prices have fallen by more than 2%, leading to losses of up to 7% in other cryptocurrencies such as XRP, Solana’s SOL, Ethereum, and Cardano’s ADA. However, BNB Chain’s BNB token gained 1.5% during this process.

Experts indicate that the $125,000 level presents a critical boundary for the market. While ETF demand and whale withdrawals provide support for the bulls, the silence on macroeconomic issues may not last long.