Analyst Predicts Bitcoin Surge to $91,539 Despite Fed's Stance

Analysts Predict Bitcoin Surge Despite Federal Reserve's Stance

by Faruk Imamovic
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Analyst Predicts Bitcoin Surge to $91,539 Despite Fed's Stance
© Getty Images

On June 11, Bitcoin whales took advantage of a significant market slump, amassing a staggering 20,600 BTC worth approximately $1.38 billion. According to blockchain analytics firm CryptoQuant, this marks the largest single-day inflow for Bitcoin whales since February 28. This event is noteworthy as Bitcoin's price plummeted from $71,650 on June 7 to around $69,000, prompting whales to seize the opportunity to accumulate the cryptocurrency at a lower price.

The accumulation spike on June 11 contrasts with the relatively steady inflows of 1,300 to 2,200 BTC per day observed in the days leading up to it. Notably, Bitcoin's price briefly spiked on June 12, following favorable U.S. Consumer Price Index results, reaching $67,500 at the time of writing. This price action reflects a broader trend in which Bitcoin supply on exchanges fell to its lowest level since December 2021, as noted by on-chain intelligence platform Santiment.

A decrease in Bitcoin reserves on exchanges typically signals a robust market, with investors anticipating long-term price increases. Despite a recent dip, Bitcoin remains down 8.45% from its all-time high of $73,737 recorded on March 13, as per CoinGecko data.

Ethereum Whales Also Active

Parallel to Bitcoin's activity, Ethereum whales have also been making significant moves. Industry analyst Ali Martinez, citing Santiment data, reported that Ethereum whales purchased over 240,000 Ether worth nearly $840 million at current prices. This wave of accumulation highlights the growing interest and confidence in Ethereum, despite contrasting trends in its supply on exchanges.

While Bitcoin reserves on exchanges are decreasing, Ether reserves have been on the rise. Currently, 17.98 million Ether, valued at $63.1 billion, are held on cryptocurrency exchanges. This increase could imply different market expectations or strategies between Bitcoin and Ethereum investors. Ethereum’s price has also experienced a decline, down 8% from $3,815 to $3,510.

Bitcoin Whales Amass 20,600 BTC During Market Slump
Bitcoin Whales Amass 20,600 BTC During Market Slump© Getty Images
 

Analyst Predicts Bitcoin Surge Despite Fed’s Hawkish Stance

Despite concerns about the U.S. Federal Reserve's hawkish tone, some analysts remain optimistic about Bitcoin's future. Pseudonymous analyst CryptoCon maintains that Bitcoin will surge 25% above its current all-time high, reaching a target of $91,539. This prediction is based on the "Magic Bands" model, which divides the Bitcoin cycle into different levels derived from previous peaks and troughs.

According to CryptoCon, Bitcoin is currently consolidating within level 2.5 of the model. Once it breaks through this level, the next step is $91,539, followed by the ultimate cycle top target of $123,832. This forecast suggests a 34% increase from Bitcoin's current price of $68,315, according to CoinMarketCap data.

However, not all analysts share this bullish outlook. The Federal Open Market Committee (FOMC) has maintained interest rates with only one planned reduction in 2024. This decision has led some traders to express concerns about the Fed's aggressive stance on controlling inflation, which traditionally influences investor behavior towards riskier assets like Bitcoin.

Michaël van de Poppe, founder of MN Trading Consultancy, remarked on the Fed's unexpectedly hawkish tone, while independent analyst Ted Talks Macro echoed similar sentiments. Conversely, Markus Thielen, head of research at 10x Research, believes the FOMC might need to adjust its expectations later this year due to the current inflation prints.

The recent Consumer Price Index (CPI) results were more positive than expected, showing a month-on-month figure unchanged in May and a year-on-year tally at 3.3%, both slightly lower than forecast. This news led to a brief Bitcoin surge of $1,500 in seconds, reaching $69,636.

Bitcoin Miners Benefit from Trump’s Support

In a related development, Bitcoin mining stocks saw significant gains following a promise of support from U.S. presidential candidate Donald Trump. On June 12, Trump pledged to bolster Bitcoin mining operations in the U.S., asserting that this move would help the country achieve energy dominance. His remarks came shortly after a meeting with top industry executives.

Major Bitcoin Miners See Stock Price Surge Post-Trump Meeting
Major Bitcoin Miners See Stock Price Surge Post-Trump Meeting© Getty Images/Brandon Bell
 

Trump's promise resonated well with Bitcoin mining stock traders. TeraWulf and Hut 8 Mining, two of the largest Bitcoin miners by market cap, experienced significant stock price increases of 10.5% and 10.07%, respectively. Other major players like Core Scientific, Iris Energy, and Cipher Mining also saw notable gains.

Despite Bitcoin only managing a modest 1.4% increase in the past 24 hours, the mining industry as a whole benefited, with its market cap rising to $26.4 billion. Companies such as CleanSpark and TeraWulf have been standout performers this year, with their shares up 58.55% and 66.96% year-to-date. However, not all Bitcoin miners have enjoyed this upward trajectory. Marathon Digital and Riot Platforms have faced declines of 11.43% and 31%, respectively, in 2024.

During a meeting at his Mar-a-Lago resort, Trump discussed with industry executives how Bitcoin mining could strengthen the electrical grid and create more jobs. Attendees included Riot Platforms CEO Jason Les, CleanSpark executive chairman Matthew Schultz, and Amanda Fabiano, a board director at TeraWulf, all of whom reported positive experiences from the meeting.

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