Bitcoin enters the euphoria phase: analysts predict that the rally could extend until 2025

Bitcoin Enters Euphoria Phase: Analyst Predicts Rally Could Extend Through 2025

by

Bitcoin enters the euphoria phase: analysts predict that the rally could extend until 2025

Bitcoin surpassed $100,000 for the first time on December 6, marking a huge milestone for the leading cryptocurrency. The result comes against a backdrop of lackluster performance from traditional global assets, demonstrating the resilience and growing appeal of Bitcoin.

In the last month, the price of Bitcoin has increased by 32%, in stark contrast to the 6.3% decline in oil, the 1% decline in the S&P 500 and a 1% decline in gold.

The cryptocurrency’s remarkable performance has fueled optimism among analysts, many of whom predict that the current bull rally could extend into 2025.

This phase, often indicated as The “euphoria phase” in crypto circles is characterized by increased investor and market confidence exuberance.

EXPLORE: 15 Best Anonymous Bitcoin Wallets Without KYC in 2024

The long-term holder NUPL suggests a phase of euphoria

Quinten François, co-founder of WeRate, pointed to the unrealized profit/loss (NUPL) metric of long-term holders as evidence of Bitcoin entering this euphoric phase.

“Bitcoin is entering the euphoria phase. You have a maximum of 12 months before the peak of the cycle,” he wrote in a December 7 post on X.

The NUPL metric measures the profit or loss status of Bitcoin holders, indicating the overall profitability of the network.

James Coutts, chief crypto analyst at Real Vision, also commented on the milestone, highlighting Bitcoin’s strength despite a challenging global liquidity environment.

“Bitcoin has reached new all-time highs amid deteriorating liquidity backdrop. If conditions worsen, the rally, while euphoric, may only last for a limited time. If conditions ease, we could see another benefit,” Coutts wrote on December 6.

Global liquidity trends they are seen as a critical factor in Bitcoin’s trajectory. A potential bottom in the M2 global liquidity index, which includes cash and short-term bank deposits, suggests Bitcoin could continue its rise in the short term before tackling a fix.

Meanwhile, Raoul Pal, founder and CEO of Global Macro Investor, predicts a local high above $110,000 by January 2025, based on Bitcoin’s correlation with the liquidity index.

EXPLORE: The 18 best new cryptocurrencies to invest in 2024

Corporate interest in Bitcoin increases

Last week, the North American Bitcoin mining giant Hut 8 announced a $250 million share buyback program along with a stock sales initiative. Proceeds from these programs are expected to fund various initiatives, including the acquisition of Bitcoin as a strategic reserve.

Hut 8 joins a growing list of companies investing in Bitcoin reserves, including Genius Group, Hoth Therapeutics and Jiva Technologies, signaling a broader trend of corporate interest in digital assets.

Other companies are also turning to Bitcoin to diversify their treasuries. Rumble video platform announced its intention to invest in Bitcoin on November 25, while Genius Group recently acquired 110 BTC for $10 million, with the aim of holding up to 90% of its reserves in Bitcoin.

Also, healthcare technology company Semler Scientific has expanded its Bitcoin portfolio. He purchased another 47 BTC for $3 million. The acquisition brings the company’s total holdings to 1,058 BTC as part of its ongoing strategy to accumulate Bitcoin.

More recently, the Japanese investment company Metaplanet also announced which is looking to bolster its Bitcoin reserves by raising more than $62 million (9.5 billion Japanese yen) through an equity acquisition initiative.

EXPLORE: The best new cryptocurrencies to invest in 2024

The post Bitcoin Enters Euphoria Phase: Analyst Predicts Rally Could Extend to 2025 appeared first on 99Bitcoins.

Leave a Comment