Bitcoin’s price has surged beyond the $120,000 milestone, driven primarily by escalating macroeconomic pressures including rising US national debt and persistent inflation concerns. Analysts widely interpret this rally as reinforcing Bitcoin’s potential role as a hedge against currency debasement.
Market analysts project further gains for the leading cryptocurrency. BitQuant has set a bullish target of $145,000, while Cas Abbe predicts a phased rally potentially reaching $135,000.
The significant July gains align with Bitcoin’s historical performance trends, showing an approximate 14% increase. This performance mirrors gains seen in traditional markets like the S&P 500 during the same period.
The surge coincides with substantial US fiscal pressures. The national debt increased by $316 billion in May alone, heightening fears of inflation and diminishing dollar value, factors contributing significantly to Bitcoin’s appeal.
Concurrently, Bitcoin’s market dominance has declined below 65%. This shift suggests potential momentum building for alternative cryptocurrencies (altcoins), with Ether (ETH) notably gaining nearly 20% over the past week.