Bitcoin, the world’s leading cryptocurrency, maintained its stride above $107,000 late into Thursday evening, as analysts observed bullish momentum, with some forecasting an imminent breakout to a fresh record high.
As per data from The Block, bitcoin noted a slight decrease of 0.5% in the last 24 hours, trading at $107,413 as of 11:30 p.m. ET on Thursday. The digital currency has consistently hovered around the $107,000 benchmark since Wednesday, following its recovery from sub-$100,000 levels last week.
“We believe that Bitcoin is in prime condition to exceed its previous record high of roughly $112k, especially considering the temporary cessation of the Iran-Israel conflict,” commented Jeff Mei, Chief Operating Officer at BTSE exchange.
Mei suggested that the eased inflation concerns and potential tariff reductions are mounting extra pressure on U.S. Federal Reserve Chairman Jerome Powell. “It’s probable that he might either lower rates soon or be ousted sooner than expected, both scenarios could surge markets upwards,” Mei added. “Investors are more bullish than ever.”
The forthcoming FOMC meeting is slated for the end of July, with the CME Group’s FedWatch Tool presently indicating a 20.7% probability of a 25 basis point cut in interest rates.
Rachael Lucas, a Crypto Analyst at BTC Markets, echoed Mei’s sentiment, stating, “A new all-time high feels more like a timing issue than a probability. Several factors are at play: continuous institutional allocation, particularly from corporate treasuries and sovereign wealth funds; expanding use cases like Bitcoin-backed mortgages; regulatory advancements in key jurisdictions; and macro tailwinds such as interest rate reductions and inflation stabilization,” Lucas said.
She further highlighted the growing significance of cryptocurrency in conventional finance, including the recent initiative from the U.S. Federal Housing Finance Agency to evaluate crypto as an asset for mortgage application assessments.
However, Vincent Liu, Chief Investment Officer at Kronos Research, pointed out that Bitcoin’s fear and greed index currently indicates “greed,” implying that the bullish sentiment may be overextended. “As the July 8 trade talk deadline nears, traders should proceed with caution, as any tension could disrupt the market. Also, interruptions in ETF inflows could destabilize the steady stream of support, causing market volatility,” Liu warned.
The Trump administration has earmarked July 8 and 9 as the deadlines for finalizing trade agreements with various countries, after which the previously suspended “reciprocal” tariffs on over 60 trading partners could be reinstated. The White House announced that it could extend the deadline, as per the WSJ.
