Bitcoin Price Prediction: $138K in 3 Months?
Bitcoin Price Could Soar to $138,000
Recent analysis suggests Bitcoin (BTC) may reach a price of $138,000 within the next three months. This prediction, made by network economist Timothy Peterson, is based on the correlation between the US High Yield Index Effective Yield and historical BTC price movements.
Macroeconomic Factors Influencing Bitcoin
Peterson's analysis considers the current unusual macroeconomic climate, influenced by ongoing global economic uncertainties. He highlights the US High Yield Index Effective Yield, currently above 8%, as a key indicator. Historical data reveals that in similar situations, Bitcoin has risen 71% of the time, with a median gain of +31% over three months. Even in cases of decline, the maximum loss observed was only -16%.
This analysis indicates a significant probability of Bitcoin price upside, potentially placing BTC between $75,000 and $138,000 in the next 90 days. To reach the upper limit, a 62% gain from current levels would be required.
The Bitcoin-Dollar Correlation
Peterson also notes the unprecedented positive correlation between Bitcoin and the US dollar index (DXY). He predicts this correlation will eventually reverse, leading to Bitcoin decoupling and price appreciation as real yields drop and liquidity returns.
The current low level of the DXY, below 100, supports this prediction, mirroring the initial stages of the 2023 bull run. This suggests that Bitcoin could benefit from a weakening dollar.
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Disclaimer: This article does not constitute investment advice. All investment decisions involve inherent risks, and readers should conduct their own thorough research before making any investment choices.