Bitcoin, the leading cryptocurrency, could witness a massive 200% surge in its current cycle, according to Real Vision analyst Jamie Coutts. Coutts envisions Bitcoin potentially reaching a six-figure valuation, fueled by a combination of factors, primarily driven by the actions of central banks.
Coutts anticipates a 2X to 3X increase in Bitcoin’s value this cycle, although this projection is a step down from the significant gains observed in 2017 (19X) and 2020 (6X). He believes that for Bitcoin to achieve this target, the US Dollar Index (DXY) must decline significantly, dropping below 101. This downward shift in the DXY, which measures the US dollar’s strength against other major currencies, is expected to be triggered by ongoing central bank injections.
Coutts’s global liquidity model, which previously predicted a 75% increase in Bitcoin’s value in November 2023, now indicates another upward trend. He attributes this bullish outlook to the actions of the Bank of Japan (BoJ) and the People’s Bank of China (PBoC), which contributed 41% of the global liquidity infusion last month. These two banks added $400 billion and $97 billion respectively, causing a significant expansion of the global money base (credit) by $1.2 trillion. This expansion is further reinforced by a sharp decline in the US dollar, which suggests a coordinated effort involving the Federal Reserve.
The potential surge in Bitcoin’s value is significant, given its inherent volatility. The prediction hinges on the assumption that the US Dollar Index will weaken due to continued central bank injections. This highlights the influence of major global banks like the BoJ and PBoC on Bitcoin’s value, as their contributions to global liquidity play a crucial role in triggering bullish trends.
The prediction also underscores the coordinated efforts of global banks, including the Federal Reserve, in managing the global money base. These actions, directly impacting the value of Bitcoin, reflect the complex interplay between global finance, central banking, and the emerging world of cryptocurrencies.
