Timothy Peterson, a crypto analyst, says that Bitcoin can reach $100K if the high-yield rate stays below 7% and reaches a “sustainable all-time high.”
The analyst says that only one indicator can determine the boom in Bitcoin price. He said that Bitcoin could surpass $73700 in 2024, But all depends on the United States Federal Reserves.
“The U.S. high yield rate is a great indicator, and it needs to drop below 6 or 7% for a sustainable all-time high,” Timothy Peterson, Cane Island investment manager, said in an interview. He further stated that the primary indicator for the price of Bitcoin he looks at is an interest rate movement.
At the time of writing, the United States’ high yield rate represents the interest rate of corporate bonds standing at 7.54%, according to Ycharts data.
According to Peterson’s prediction, if the yield rate falls below 7% or 6%, there are big chances to see Bitcoin prices skyrocketing. He said that in this situation, Bitcoin can reach $100K in the last quarter of 2024, or the beginning quarter of 2025.
Source: YCharts
In the United States, when the government reduces interest rates, yield rates also become low. According to a recent survey conducted by Reuters, nearly two-thirds of economists predict this will happen in September.
The interest rate is a primary indicator for crypto traders. If the interest rate is low, it leads to reduced yield rates for investors, and they feel safe investing in bonds and term deposits.
As an outcome, more investors shift their interests to risky assets like Bitcoin to achieve better investment returns.
Source: CoinMarketCap
Bitcoin can reach 100k?
At the time of writing, Bitcoin is trading at $62.12K, a low of 6.48% in a month.
Peterson said that between September and October, overall markets are flat and volatile.
“Not always, but many times,” he commented. Although the U.S. elections are coming, he claimed that “uncertainty will be higher through October” before the election day, currently scheduled for November 4th.
Scott Melker, a crypto analyst who is also known as “The Wolf of All Streets,” suggests that the decrease in interest rates is not always favorable for assets above fixed-income investments.
“There is a wildly popular theory that a Fed pivot is good for markets,” he stated in a post on May 14.
“Rate cuts generally precede major dips,” he commented on the overall market.
