As Bitcoin surged past $94,000, a top strategist suggests the cryptocurrency could realistically hit $200,000 in the near term—driven by institutional inflows and favorable macroeconomic conditions.
Matt Mena, a crypto research strategist at 21Shares, unpacked the key drivers behind Bitcoin’s breakout. He attributed the rapid climb to a combination of shifting geopolitical dynamics and macroeconomic catalysts. Among these: former President Donald Trump’s more conciliatory stance on China and renewed clarity over Federal Reserve Chair Jerome Powell’s leadership. Coupled with a weakening U.S. dollar, these developments are creating a ripe environment for risk-on assets—and Bitcoin is standing out as more than just a speculative play.
“This rally isn’t fueled by retail hype,” Mena said. “It’s institutional capital positioning for what many see as a new monetary and political regime.”
That shift is becoming clear in Bitcoin’s behavior compared to traditional markets. Mena noted that Bitcoin’s 7-day correlation with the S&P 500 and Nasdaq has turned negative—signaling it’s no longer moving in lockstep with tech stocks. Instead, Bitcoin is emerging as a “hybrid macro asset—roughly 80% digital gold, 20% growth equity.”
Capital is following this new narrative. Spot Bitcoin and Ethereum ETFs brought in over $1.3 billion in just two days. Meanwhile, over $500 million in crypto short positions were liquidated as traders raced to adjust.
Short-term resistance may appear around $95,000, Mena cautioned, but the key psychological level remains $100,000. Beyond that, the broader backdrop supports even greater momentum. The total crypto market cap has once again exceeded $3 trillion—levels not seen since the 2020–2021 bull cycle.
Macroeconomic trends are reinforcing the bullish outlook: 10-year Treasury yields are approaching 4%, and expectations are building for three to four Fed rate cuts by year’s end.
According to Mena, Bitcoin could double by the end of the year, potentially reaching $200,000 as global liquidity expands—mirroring previous cycle behavior.
“Investors are starting to view Bitcoin less as a gamble and more as a safe haven in a world of rising uncertainty,” Mena concluded.
