The price of bitcoin is holding steady around $111,000 after a turbulent few weeks, but analysts at TD Cowen predict that the price of bitcoin could reach $141,000 by December.
In a note released Monday, the firm highlighted the recent crash and recovery of the cryptocurrency market as a testament to the resilience of the broader cryptocurrency and bitcoin ecosystem.
The flash crash earlier this month triggered liquidations of around $19 billion, the largest single-day event in cryptocurrency history. Despite the size of the sell-off, TD Cowen noted that most exchanges remained operational with minimal disruption, demonstrating the market’s ability to absorb shocks, according to The Block report.
The decline was initially spurred by US President Donald Trump’s confirmation of a 100% tariff on imports from China, which sent the total cryptocurrency market tumbling by more than 10%.
While less trusted tokens suffered heavy losses, major digital assets like Bitcoin did well: Bitcoin briefly fell 15% before closing down just 8% on the day.
“Although this was the largest single-day liquidation ever seen, with open interest halved across all venues, the majority of cryptocurrency exchanges operated with little to no downtime,” the note read.
Global Bitcoin Adoption
Analysts at TD Cowen attribute the episode not only to market resilience but also to growing global adoption. In Japan, for example, the number of registered accounts holding digital assets has quadrupled over the past five years, reaching more than 7.9 million.
The surge in adoption has prompted the Japan Financial Services Agency to reconsider its long-standing restrictions on banks investing in digital assets such as Bitcoin.
Bitcoin price recovered to around $111,000 today, after falling into the $104,000 range last week, as renewed corporate accumulation and optimism about a potential end to the US government shutdown revived market sentiment.
Bitcoin closed September around the current range, but before the flash crash, it reached all-time highs in early October.
The price of Bitcoin is stalling
According to analysts, key resistance for bitcoin now lies at $112,000, $115,500 and $117,600, with a convincing break above $122,000 needed to bring the bullish bias back, while support below $105,000 could fail, with stronger levels between $98,000 and $96,000.
Next week could see a modest rebound, but failure to hold above $106.9K could open the door to prices below $100K, especially if the FOMC does not offer a significant rate cut.