Bitcoin tumbled on Tuesday, after the Bureau of Labor Statistics said domestic job openings jumped to 8.096 million, well ahead of the consensus estimate of 7.65 million. That prompted a jump in Treasury yields, as bond traders priced lengthening odds of the Federal Reserve lowering interest rates this month.
Those could prove to be temporary headwinds for the largest cryptocurrency, because some market observers believe bitcoin will extend its 2024 bullishness this year. Repeating last year’s percentage gains, which saw the digital currency become the seventh-most valuable asset in the world — behind gold and a handful of U.S. stocks — might be asking a lot, but some experts also see a double as possible.
That implies bitcoin could flirt with $200,000 later this year, benefiting exchange traded funds such as the VanEck Bitcoin ETF Trust (HODL), the Coinshares Valkyrie Bitcoin Fund (BRRR) and the Grayscale Bitcoin Trust ETF (GBTC), among others.
Bitcoin $200K Is Possible, Says Investor
Count KULR Technology Group (KULR), a provider of aerospace and defense services and technologies, as among the entities that are bullish on bitcoin. The Houston-based company told Coin Telegraph it bought $21 million worth of the cryptocurrency during its December correction.
KULR Technology CEO Michael Mo told the publication that, aided by major economies potentially adopting bitcoin reserves, the digital currency could ascend to $200,000 at some point this year.
“The biggest catalyst is the adoption of a strategic BTC reserve by nations and states. US, Germany, Switzerland, and other [countries]are currently looking into it,” Mo told Zoltan Vardai of Coin Telegraph.
In the U.S., there is some momentum for establishing a bitcoin reserve. Market observers view President-elect Trump as overtly pro-crypto, and he’s touted the idea of a bitcoin reserve. Senator Cynthina Lummis (R-WY), long a bitcoin champion, proposed the US Bitcoin Act last year.
“The acquisition and long-term storage of substantial quantities of Bitcoin by the United States can strengthen the financial condition of the United States, providing a hedge against economic uncertainty and monetary instability,” according to the Lummis bill.
It’s not yet clear if there’s room on the 2025 legislative calendar to take up the Bitcoin Act, but should major developed economies establish bitcoin reserves, the related persistent buying could be a significant contributor in driving bitcoin to new highs.
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