Will BTC keep surging or pause for a correction? BlackRock CEO: Could reach $700,000
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Will BTC keep surging or pause for a correction? BlackRock CEO: Could reach $700,000
The crypto market is waiting for the next catalyst, whether it's an announcement regarding a U.S. strategic Bitcoin reserve or the upcoming approval of certain altcoin ETFs.
Navigating Web3 tides with focused insightsBy BitpushNews
After hitting a record high of $109,225 on the day of Donald Trump's inauguration, bitcoin prices slightly pulled back to $103,576.49 by Wednesday afternoon, down 2.2% over 24 hours, though still up 9% for the month.
In the meantime, BlackRock CEO Larry Fink shared an optimistic outlook on digital currencies—particularly bitcoin—at the World Economic Forum in Davos.
Fink said that demand for bitcoin as a safe-haven asset is rising amid growing investor concerns about currency devaluation and geopolitical-economic instability. He boldly predicted that if more institutional investors allocate 2% to 5% of their assets into bitcoin, its price could reach $700,000.
"This week I spoke with a sovereign wealth fund, and the discussion was: 'Should we allocate 2% or 5%?'" he said. "If everyone adopts this view, then each bitcoin could be worth $500,000, $600,000, even $700,000."
"So I truly believe in its use as a tool," Fink added, emphasizing that he wasn't trying to promote bitcoin.
Inflation Concerns Persist
Although the U.S. annual Consumer Price Index (CPI) rose 3.2% year-on-year in 2024—slightly below the expected 3.3%—some investors and analysts argue that CPI, based on a basket of common household goods, does not accurately reflect the true inflation rate.
A shareholder proposal submitted to Meta in January this year urged the company to hold bitcoin as a reserve asset, arguing that real inflation may be twice as high as the official CPI figures.
The free-market think tank National Center for Public Policy Research made the same shareholder proposal to Amazon last December, citing similar reasons.
The think tank stated that the average CPI inflation rate over the past four years has been approximately 4.95%, peaking at 9.1% in June 2022. "In reality, actual inflation is much higher, with some studies estimating it to be nearly double the CPI figure at times. Therefore, corporate assets need to appreciate at these rates just to break even," it said.
Larry Fink also issued a warning on inflation, expressing concern that inflation could rise over the next 12 months and cautioning that it’s dangerous to assume inflation has already peaked.
Typically, a stronger dollar and rising interest rates would create headwinds for most risk assets, including bitcoin.
Where Is Bitcoin Headed Next?
Martin Leinweber, Director of Digital Asset Research and Strategy at index provider MarketVector Indexes, told MarketWatch that despite bitcoin reaching new highs above $109,000, it has mostly traded within a consolidation range between $92,000 and $106,000. The crypto market is now awaiting the next catalyst—whether it's an announcement regarding a U.S. strategic bitcoin reserve or the upcoming approval of certain altcoin ETFs.
To date, U.S. regulators have only approved Bitcoin and Ethereum ETFs. Several asset management firms have filed applications for ETFs linked to Solana, XRP, Dogecoin, and even a Trump-themed ETF. Matt Mena, Crypto Research Strategist at 21Shares, said the SEC’s newly established crypto task force could accelerate approvals for such products.
"The approval pathway for crypto ETFs is becoming more structured and standardized, which can unlock new inflows from both institutional and retail investors who have long lacked familiar, regulated investment vehicles for accessing these assets," Mena commented.
Trump repeatedly vowed during his campaign to establish a strategic bitcoin reserve in the United States. Joe McCann, CEO of crypto investment firm Asymmetric, pointed out in a recent interview that although the president hasn’t detailed any specific plans yet, one possibility is that the U.S. government stops selling bitcoin seized from illegal activities—a move that would alleviate market fears of supply overhang.
Leinweber noted that from a technical perspective, bitcoin’s next target lies between $118,000 and $120,000.
Katie Stockton, founder of Fairlead Strategies, recently conducted an in-depth analysis of the bitcoin market. She noted that while bitcoin’s short-term performance has improved, multiple technical indicators suggest the market has entered an overbought condition. "Unless bitcoin decisively breaks through the key resistance level at $108,300, we advise investors to remain on the sidelines and avoid blindly adding positions," Stockton emphasized. She explained that a "decisive breakout" means the price must surpass this level with strong momentum, rather than briefly touching it before retreating.
Despite potential near-term volatility, Stockton remains bullish on bitcoin’s long-term outlook. "Our monthly technical indicators show that bitcoin is still in a long-term bullish cycle. Therefore, we view the current consolidation phase as merely preparing the ground for larger gains ahead," she said.
Crypto trader Krillin hinted on platform X that bitcoin may trade sideways between $100,000 and $110,000 ahead of the Federal Open Market Committee (FOMC) meeting on January 28–29. "Unless something unexpected happens—like the Bank of Japan taking surprising monetary action—we’re likely to see range-bound trading between $100K and $110K until the FOMC concludes at the end of the month," the trader said.
The analyst noted that since no rate cut is currently expected on January 29, there remains a risk of another sell-off. According to the CME FedWatch tool, there is a 99.5% probability that interest rates will remain unchanged at 4.25% to 4.5%.
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