Bitcoin may reach $100,000 by January 2025

Analysts at 10x Research have forecasted that Bitcoin (CRYPTO:BTC) could hit $100,000 by January 2025, driven by increasing institutional interest and favorable market conditions. 

The prediction is based on a model that recently triggered two buy signals, with the latest occurring on October 14. 

10x Research claims its prediction model has shown an accuracy rate of 86.7% over the last 15 signals. 

The analysts explained their rationale: “When Bitcoin sets a new six-month high for the first time in six months like it did recently, we typically see a median return of 40% over the next three months.” 

If this trend holds true, a 40% increase from the current price of approximately $73,000 would push Bitcoin above $101,000 by January 27, 2025. 

Another contributing factor to this bullish outlook is what is referred to as the “Bitcoin black hole effect,” which suggests that Bitcoin's increasing dominance is drawing value away from alternative cryptocurrencies. 

Institutional investors, including firms like BlackRock, are beginning to view Bitcoin as a long-term stable asset akin to digital gold. 

The report noted, “Gold has always been seen as a safe haven asset, so if Bitcoin is the new digital gold, it makes sense that institutions would be interested.” 

In October alone, the spot Bitcoin exchange-traded funds (ETFs) attracted $4.1 billion in investments. 

This influx of capital has also positively impacted stock prices of Bitcoin mining companies, which was previously predicted by 10x Research. 

Additionally, the report speculated that Donald Trump's potential victory in the 2024 U.S. presidential election could further benefit the crypto market. 

Upcoming regulations allowing companies to report their Bitcoin holdings at current market prices may encourage more businesses to invest in cryptocurrency.

In contrast, 10x Research expressed skepticism about Ethereum's long-term prospects due to lower yields over the past two years, although short-term rallies are still anticipated if innovations occur.

At the time of reporting, the Bitcoin price was $72,273.99.