Bitcoin price prediction: here’s why BTC just hit an all-time high

Bitcoin price surged to a record high on Sunday, continuing a trend that has been going on in the past few weeks. BTC jumped to a high of $125,650 as it rose for the fifth consecutive day following the crash to $108,652. This article explains some of the top reasons why BTC is soaring.

Bitcoin price is soaring as safe-haven demand rises

One of the main reasons why the Bitcoin price has jumped is that it has emerged as a safe-haven asset. This mirrors the performance of gold, which has jumped to a record high in the past few days. 

Investors see Bitcoin as a digital equivalent to gold. As such, while old-school investors are buying gold, the new generation leans toward Bitcoin, which has some solid fundamentals. 

For example, unlike gold, Bitcoin has a limited supply of 21 million coins and most of them have been mined already. Many have been lost and millions of others are held by treasury companies that are not interested in selling. 

Bitcoin’s mining difficulty continues rising as the halving effect reduces the block rewards every four years. At the same time, Bitcoin demand continues rising, mostly from corporations.

All this has led to a low Bitcoin supply, with the number of coins in exchanges falling to the lowest level in years.

Federal Reserve interest rate cuts

The other main catalyst for the Bitcoin price has been the Federal Reserve, which has started cutting interest rates this year. It slashed rates by 0.25% in September, and analysts point to more cuts in the coming months. 

The odds that the bank will deliver more cuts in the coming meetings jumped after ADP published the latest job numbers. Its report showed that the economy shed over 36,000 jobs in September this year.

The ADP report was the only one that came out last week as the Bureau of Labor Statistics (BLS) is part of the government shutdown. Therefore, Polymarket and the CME Fed Tool predict that the bank will cut interest rates by 0.25% in the coming meeting, which will boost Bitcoin prices.

BTC ETF inflows are rising

Meanwhile, there are signs that institutional investors continue to load up on Bitcoin using ETFs. Data shows that Bitcoin had inflows in the last five consecutive days. These funds added over $3.25 billion in assets last week, bringing the total inflows to over $60 billion for the first time ever. 

This growth has helped to transform BlackRock’s IBIT into one of the biggest and most profitable funds globally. It now has over $90 billion in assets and a 25 basis points expense ratio.

BTC price has strong technicals

The other bullish catalyst for the Bitcoin price is its strong technicals. It recently formed a giant bullish flag pattern, which is made up of a vertical line and a descending channel pattern. 

The coin has moved above the 50-day and 100-day Exponential Moving Averages (EMA). Also, the Average Directional Index (ADX) has jumped to nearly 30. Therefore, the coin will likely continue soaring as bulls target the next key resistance at $130,000.

Read more: Bitcoin price prediction: BTC could hit $200K by year end as analysts eye strong Q4