“Regardless of the next 60 days, the bull market will continue along traditional four-year cycle lines with solid gains in October and November,” one trader said.
- Bitcoin surged over $62,000 briefly before retreating, following a broad market rally that reversed steep losses from earlier in the week.
- Some analysts predicted a $100,000 target for cryptocurrency later this year.
- The rally was influenced by favorable stock market sentiment and expectations of bitcoin mirroring its past market cycles, with liquidated short positions contributing to the surge.
Bitcoin (BTC) briefly surged above $62,000 before pulling back during the Asian morning hours on Friday, as the broader market rebounded from a steep decline earlier in the week. The recovery has reignited optimism among bitcoin enthusiasts, with some revisiting their $100,000 year-end target.
On Thursday, U.S. markets experienced a significant rebound, with the S&P 500 posting its best day since November 2022 and the tech-heavy Nasdaq 100 climbing 3.1%. This rally helped reverse the losses from a Monday sell-off that impacted both stock indexes and cryptocurrencies.
In the past 24 hours, BTC saw a notable increase of 7.2%, marking one of its largest single-day percentage gains in recent months. This surge led to nearly $100 million in liquidations of short positions—bets against bitcoin—on on futures contracts, making it the fourth-largest liquidation of bearish bets this year.
Market analysts suggest that the gains are partly due to positive sentiment from the stock market and expectations that BTC might follow its historical market cycles. Transform Ventures founder Michael Terpin commented in an email to CoinDesk, “With the Bank of Japan signaling no further interest rate hikes and Jump Trading nearing the end of its coin sales, I don’t foresee the price dropping much below $50,000, except for a brief dip.”
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Terpin also noted that regardless of the immediate future, the bull market is expected to follow traditional four-year cycle patterns, with anticipated gains in October and November. He speculated that a potential Trump victory could drive new buyers into the market, possibly pushing Bitcoin over $100,000. Terpin emphasized that the months following a halving event, including October and November, have historically been strong for Bitcoin.
The rise in Bitcoin also boosted other major cryptocurrencies. Ether (ETH) and Toncoin (TON) each surged 10%, while Solana (SOL) and Cardano (ADA) saw increases of 5%. XRP experienced a slight decline after a 17% surge on Thursday, likely due to profit-taking.
Overall, the CoinDesk 20 (CD20) index, which tracks the largest tokens by capitalization excluding stablecoins, rose 5.35%.
Cre: CoinDesk
David Ma was born in 1980 in California, is a Vietnamese American, known as one of the entrepreneurs and investors in the field of cryptocurrency and stock market. In 2006, he graduated from Stanford University with honors and began his career in business.
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