Crypto expert shares year-end prediction for Bitcoin
While Bitcoin (BTC) and altcoins experienced a period of stagnation during the summer, the market has shown a notable rally in recent weeks. Leading figures in the cryptocurrency industry have begun to offer their predictions for the year-end prices.
Crypto expert Markus Thielen, the Head of Research at Maxiport and the founder of DeFi Research, has shared his expectations for BTC as the year draws to a close.
Thielen, who is optimistic about the market’s continued growth, highlights the potential for decreasing inflation and the prospect of interest rate cuts in the US. Based on these factors, he predicts that the price of BTC will reach at least $40,000 by the end of the year.
Major BTC options are expiring
In addition to his broader market outlook, Markus Thielen also discussed specific developments in the BTC options market that are nearing their expiration dates.
Thielen pointed out that towards the end of November and December, the rates of unpaid calls on two significant options—one valued at $7.5 billion and the other at $4.85 billion—reached 3%. He suggests that this situation will necessitate options traders to continue purchasing BTC as a protective measure up until these key dates.
When is the Fed rate cut?
Consumer inflation in the US recently dipped to 3.2 percent, coming in below expectations. This decrease has spurred expectations that the Federal Reserve might advance its schedule for discount rate adjustments.
Market predictions now lean towards the Federal Reserve beginning to implement rate cuts by the end of spring 2024. According to CME FedWatch data, the likelihood of a rate cut occurring at the Federal Open Market Committee (FOMC) meeting scheduled for June 12, 2024, is estimated at 84.4 percent.
