Background on Bitcoin and its Recent Performance
Bitcoin, the world’s leading cryptocurrency, experienced a slight dip on Friday, relinquishing some of its recent gains as risk appetite cooled amidst uncertainty surrounding the Federal Reserve’s interest rate plans and an upcoming key inflation report. Despite this, Bitcoin still gained 7.85% for the week and was trading at $107,613.8 per unit by late Sunday. This surge was fueled by increased corporate buying and institutional adoption, as reported by Investing.
Key Factors Driving Bitcoin’s Recent Gains
- Ceasefire between Israel and Iran: A high-level ceasefire agreement mediated by the United States between Israel and Iran boosted risk appetite throughout the week.
- Corporate and Institutional Adoption: Increased reports of corporate buying and institutional adoption further propelled cryptocurrency prices.
On Friday, Bitcoin fell by 0.1% to $106,770 but rose over the weekend. Although Bitcoin accumulated a weekly gain exceeding 7%, it failed to break out of the $103,000 to $105,000 trading range observed throughout most of June, according to analysts from Investing.
Uncertainty Impacting Risk Appetite
Despite the ceasefire between Israel and Iran, risk appetite was affected by growing uncertainty regarding the Federal Reserve’s independence and its plans to cut interest rates. Former U.S. President Donald Trump continued his personal attacks on Federal Reserve Chair Jerome Powell, demanding immediate interest rate reductions.
Trump’s attacks emerged amid reports that he might expedite the selection of Powell’s successor, potentially undermining the Fed chair as he serves until May 2026. Powell largely disregarded Trump’s calls for rate cuts, citing caution about the inflationary effects of Trump’s trade tariffs.
Bitcoin Price Predictions from Industry Experts
According to Ryan Lee, Chief Researcher at Bitget, Bitcoin is expected to reach a price between $110,000 and $115,000 by the third quarter of this year and by the end of 2025. Lee does not rule out the possibility of Bitcoin surpassing $130,000.
Standard Chartered, a UK-based multinational bank, projects that the bull cycle could extend beyond 2025 with sustained growth. Their projections include Bitcoin reaching $300,000 by 2026, $400,000 by 2027, and $500,000 by 2028 before stabilizing in 2029.
Key Questions and Answers
- Q: What caused Bitcoin’s recent gains? A: Increased corporate buying, institutional adoption, and a high-level ceasefire between Israel and Iran mediated by the United States contributed to Bitcoin’s recent gains.
- Q: What factors are impacting risk appetite? A: Uncertainty surrounding the Federal Reserve’s independence and plans to cut interest rates, along with former President Donald Trump’s attacks on Fed Chair Jerome Powell, are affecting risk appetite.
- Q: What are industry experts predicting for Bitcoin’s future price? A: Ryan Lee from Bitget Research anticipates Bitcoin to reach between $110,000 and $115,000 by the end of 2025, while Standard Chartered projects sustained growth with Bitcoin potentially reaching $300,000 by 2026, $400,000 by 2027, and $500,000 by 2028.
