Bitcoin tipped to smash US$100k as crypto bulls charge ahead
Wall Street giants, Arizona lawmakers and Fed whispers fuel digital gold rush
Bitcoin is gearing up for a six-figure breakout, with crypto watchers boldly predicting the world’s biggest digital coin could hit a jaw-dropping US$100,000, even as the US central bank holds fire on interest rate cuts.
Despite the Federal Open Market Committee (FOMC) likely keeping rates steady this week, optimism is soaring among investors, thanks to heavyweight institutions snapping up spot bitcoin exchange-traded funds (ETFs) and growing US political interest in crypto reserves.
Yesterday, May 7, bitcoin surged 2.2% to US$96,446, turbocharged by renewed risk appetite after the US and China announced plans to reopen trade talks, said Woramet Chansen, investment advisor at Merkle Capital.
“Even if the Fed does not cut interest rates this time, there is still a chance the price of bitcoin will continue rising towards the US$100,000 target in the third quarter.
“Economists still expect the Fed to cut interest rates three to four times this year, which could give crypto markets a further jolt.”
One bold move helping to boost sentiment came from the Arizona legislature, which has passed two Republican-backed bills allowing up to 10% of state funds, more than US$3 billion, to be invested in digital assets like bitcoin.
If signed into law, Arizona would become the first US state to create a bitcoin reserve, mirroring ex-President Donald Trump’s recent push for a national “strategic crypto reserve.”
Woramet said this political and institutional backing is pushing spot ETF activity higher, nudging bitcoin prices upward. But he flagged two key risks to the rosy outlook: a looming US recession and the fallout from Trump’s tax policies when the current 90-day grace period expires.
Peerapat Hankongkaew, chief investment officer at Cryptomind Advisory, raised another red flag: June’s massive rollover of US Treasury debt.
“If the government can manage a significant portion of this debt rollover, it would help sustain the economy. Conversely, limited rollover or increased defaults could indicate a contraction in market liquidity.”
Peerapat warned that confidence is fading over whether the Fed will deliver any monetary easing soon.
“Meanwhile, traders are becoming less confident that the Fed will ease monetary policy.”
Still, if the Fed holds off, it may push the Treasury to pump liquidity into markets to keep spending on track, a move that could light another fire under crypto prices.
Latest Thailand News
Follow The Thaiger on Google News:
