By Key Points
- Pseudonymous analyst CryptoCon predicts Bitcoin will surge to $91,539, a 25% increase above its all-time high.
- The prediction follows the Fed’s decision to maintain interest rates and reduce rate cuts from three to one this year.
- CryptoCon’s “Magic Bands” model suggests Bitcoin’s next steps involve breaking through consolidation to reach higher levels.
- Despite the Fed’s hawkish stance, some analysts remain optimistic about Bitcoin’s trajectory.
Bitcoin’s future looks promising according to pseudonymous technical analyst CryptoCon, who predicts the cryptocurrency will surge almost 25% above its all-time high of $73,679 to reach $91,539. This optimistic forecast comes even as the Federal Reserve maintains a hawkish stance on interest rates.
The Magic Bands Model
CryptoCon’s prediction is based on the “Magic Bands” model, which divides Bitcoin’s price cycles into different levels based on historical peaks and bottoms to project future prices. According to this model, Bitcoin is currently in a consolidation phase within level 2.5. Once it breaks through this period, it is expected to reach level 3 at $91,539, before eventually targeting the cycle top of $123,832.
An increase to $91,539 would represent a 34% spike from its current price of around $68,315, as per CoinMarketCap data.
Analyst targets $91.5K Bitcoin next despite Fed’s ‘hawkish tone’#bitcoin #BTC #tafouio #cryptonews pic.twitter.com/00l7rJ5vgo
— tafou.io (@tafouio) June 13, 2024
Market Reactions and Fed’s Hawkish Stance
The Federal Reserve’s recent meeting minutes revealed a decision to maintain interest rates in the range of 5.25% to 5.5%, reducing the anticipated rate cuts from three to just one this year. This hawkish stance, aimed at controlling inflation, typically influences market dynamics. Lower interest rates make traditional “lower-risk” assets like bonds less attractive, often leading investors to turn to riskier assets such as Bitcoin.
Despite the Fed’s position, CryptoCon remains confident in Bitcoin’s upward trajectory, supported by historical data and market patterns.
[ Crypto News Alert! ] Analyst targets $91.5K Bitcoin next despite Fed’s ‘hawkish tone’ https://t.co/PJju3Q6mlm
— CryptoBee (@CryptoBee_me) June 13, 2024
Inflation Data and Market Sentiment
The latest Consumer Price Index (CPI) report showed a year-on-year inflation rate of 3.3%, slightly below the forecast. This data provided a temporary boost to Bitcoin, which gained $1,500 in seconds following the announcement, reaching $69,636.
Markus Thielen, head of research at 10x Research, suggests that the FOMC’s expectations might be unrealistic, predicting that the Fed will have to lower its expectations later in the year as inflation rates stabilize.
Despite the mixed signals from the Fed and economic data, the overall sentiment among analysts like CryptoCon and Thielen remains optimistic, with expectations of significant price movements in Bitcoin’s favor.
