Bitcoin surpassed $100,000 for the first time on December 6, marking a major milestone for the leading cryptocurrency. This achievement comes amid poor performance of traditional global assets, demonstrating the resilience and growing appeal of Bitcoin.
Over the past month, the price of Bitcoin has jumped 32% in stark contrast to oil’s 6.3% decline, the S&P 500’s 1% decline, and gold’s 1% decline.
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 named The “euphoria stage” in crypto circles is characterized by increased investor and market confidence. exuberance.
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Long-term holder NUPL suggests euphoria stage
Quinten Francois, co-founder of WeRate, pointed to the long-term net unrealized profit/loss (NUPL) metric as evidence of Bitcoin entering this euphoric phase.
“Bitcoin is entering the euphoria phase. You have a maximum of 12 months until the peak of the cycle,” he wrote in a December 7 article on X.
$BTC enters the euphoria phase
You have a maximum of 12 months before the end of the cycle pic.twitter.com/984OYpbaRH
—Quinten | 048.eth (@QuintenFrancois) December 7, 2024
The NUPL metric evaluates 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 Hit New ATHs Amid Declining Liquidity backdrop. If conditions deteriorate, the recovery, although euphoric, can only last for a limited period. If conditions improve, we could see further progress,” Coutts wrote on December 6.
Global Liquidity Trends are seen as a critical factor in Bitcoin’s trajectory. A potential bottom in the global M2 liquidity index – encompassing cash and short-term bank deposits – suggests that Bitcoin could continue its ascent. short term before facing a correction.
Bitcoin reached new ATHs amid deteriorating liquidity.
1. If conditions worsen, the rally, although euphoric, can only last for a limited time.
2. If conditions improve from here on out, then a pullback is warranted, but then we move on.Remember, I am very… pic.twitter.com/KOclmmsNjQ
-Jamie CouttsCMT (@Jamie1Coutts) December 5, 2024
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.
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Business interest in Bitcoin increases
Last week, the North American Bitcoin mining giant Hut 8 announced a $250 million share buyback program alongside a share 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 businesses are also turning to Bitcoin to diversify their cash flow. Rumble Video Platform announced plans 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.
Additionally, health technology company Semler Scientific expanded its Bitcoin portfolio. He purchased an additional 47 BTC for $3 million. The acquisition brings the company’s total holdings to 1,058 BTC as part of its continued Bitcoin accumulation strategy.
More recently, the Japanese investment company Metaplanet also announced that it is looking to bolster its Bitcoin reserves by raising more than $62 million (9.5 billion Japanese yen) through a stock initiative.
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The post Bitcoin Enters Euphoria Phase: Analyst Predicts Rally Could Extend Until 2025 appeared first on 99Bitcoins.
