VanEck, a global investment manager, has reiterated its $180,000 price target for Bitcoin at the present cycle’s peak.
VanEck digital asset analysts Nathan Frankovitz and Matthe Sigel stated in their most recent Bitcoin report on November 21 that the crypto bull market is only “just beginning” to enter its next phase.
Within the next 18 months, they anticipated that Bitcoin (BTC) could reach a price of $180,000 due to the increasing institutional interest and a more amiable regulatory environment in the United States.
VanECK attributes BTC price increase to Trump’s victory
VanECK like numerous other market analysts, attributed the primary catalyst for the recent increase in the price of Bitcoin to Trump’s election victory, which has seen the cryptocurrency reach as high as $99,800 in the past 24 hours.
According to TradingView data, Bitcoin is trading at $98,500, which is only a 1.5% difference from breaking the record price of $100,000 at publication.
There are indications of inflation due to the high funding rates.
VanECK analysts disclosed that Bitcoin had entered a “new phase” on November 11, during which funding rates on perpetual futures contracts surpassed 10%.
“This change indicates that there is a likelihood of increased short- to medium-term momentum, as historically, higher funding rates have been associated with higher returns on 30- to 90-day investments, which is indicative of increased demand and bullish sentiment,” they stated.
Nevertheless, they observed that the market is transitioning into a phase in which investors seeking longer-term returns, such as those over a one or two-year period, are less inclined to do so as funding rates continue to rise.
“On average, purchases made on days when funding rates were above 10% began underperforming at the 180-day mark, with this trend becoming even more pronounced over 1-year and 2-year periods.”
Several analysts have reported that they anticipate that Bitcoin will be trading for $100,000 or “well above” by the end of the year. However, the current market conditions have led some analysts to suggest that Bitcoin could easily surpass $100,000 within the next week.
