Bitcoin: What to Expect After Breaching the Symbolic $100,000 Mark?

As the queen of cryptocurrencies now approaches $102,650, speculation is rife about its next destination. Should we expect another surge to unprecedented heights or an unexpected correction?

Bitcoin’s recent breach of the symbolic $100,000 mark has sparked intense speculation about the cryptocurrency’s next move. After reaching a record high of $102,650, BTC is now trading above the key psychological level. But as the dust settles from this latest surge, what can we expect next for Bitcoin?

Will it continue to defy gravity and scale new heights or is an unexpected correction on the horizon? An analysis of on-chain data and market psychology could provide us with valuable clues regarding the next steps for BTC.

Bitcoin news: on-chain signals to watch

Our good old crypto wanderer continues to surprise. After reaching a record of $102,650, investors are remaining curiously cautious. According to Santiment, the market still seems far from euphoria. And that’s good news: when the crowd panics, buying opportunities flourish; when it gets excited, it is often time to sell.

The on-chain data reveals that:

Investors are adding BTC to their portfolios at a rate not seen since March 2021, indicating bullish sentiment.

The Puell Multiple, which measures the daily issuance of BTC against its 365-day moving average, has risen to 0.89, suggesting that miners are selling a significant portion of their newly acquired BTC. This could put upward pressure on the price.

The MVRV Z-Score, which compares the market value of BTC to its realized value, currently stands at 1.69, indicating that BTC is still undervalued relative to its recent highs. This could leave room for further gains.

However, the 30-day Price Realized Zone Multiple, which measures the average price at which investors acquired their BTC, has risen to 0.98, indicating that the market is approaching a fully realized state. This could lead to a period of consolidation or correction.

As Santiment pointed out:

“This chart is essential to know when to buy (when the crowd panics) and when to sell (when it becomes greedy)“.

In short, to hope to ride the next wave of BTC, it is better to keep a close eye on collective psychology.

Bitcoin price: well-orchestrated volatility

With a price hovering around $100,000, Bitcoin is playing a balancing act. The recent increase in the Consumer Price Index (CPI) to 2.7% year-on-year fuels speculation about a potential interest rate decrease by the Federal Reserve. If these forecasts are confirmed, they could provide BTC with a tailwind.

However, investors must stay vigilant: the price of BTC is anything but predictable. Institutions like Bitwise and Bernstein are betting on a peak of $200,000 by 2025, while Fundstrat sees even bigger with a forecast of $250,000.

But in the meantime, Bitcoin is expected to continue to navigate between spectacular rises and brutal corrections.

Thus, according to VanEck, 2025 promises surprises for Bitcoin: a summer correction of 30% followed by a final sprint to $180,000. Surprises will undoubtedly be on the agenda.