Bitcoin has set a new all-time high. In intraday trading on Friday, it briefly traded at $99,500 before declining slightly. The current cryptocurrency price is $98,675.
Trading activity has increased as the market expects to break through the psychological $100,000 level. Digital asset research firm 10X Research predicts that Bit coin could reach $115,000 by Christmas.
Will Bit coin reach $115,000 soon?
In a new report, 10X Research found that the BTC market has been flush with liquidity in recent weeks. This is a key factor that could propel Bit coin to the anticipated $115,000.
Stablecoin issuer Tether issued $10 billion last month. Additionally, Circle added $3 billion during the same period, further strengthening market momentum. This led to an increase in the flow of stablecoins to cryptocurrency exchanges last month. This was confirmed by Leon Waidmann, head of research at the On-Chain Foundation, in a post published on X on November 21.
"Stablecoin inflows to exchanges have reached $9.7 billion over the past 30 days! This is the largest monthly inflow on record. Stablecoin liquidity has returned. Speculative demand continues to explode," he said.
The surge in stablecoin inflows to cryptocurrency exchanges is a positive signal. These inflows often increase buying pressure, driving up the value of crypto assets.
"This massive wave of liquidity is reflected in increased trading volume. Spot trading volume exceeds $200 billion daily. The cryptocurrency market capitalization has surpassed $3.2 trillion, the size of the UK stock market," 10X Research wrote.
Trader activity in the Blackrock Bit coin ETF (IBIT) options market is another reason why the price could rise to $115,000 by Christmas. 10X Research revealed that as of November 22, IBIT's call options outnumbered put options by 5.5 times, up from 3.8 times on Thursday. Call buyers are targeting strike prices in the 110-120% range, suggesting they expect Bit coin to soon surpass $100,000.
"Call buyers are focused on strike prices in the 110-120% range. This suggests they do not expect a near-term ceiling for Bit coin at the psychological $100,000 level. Instead, the December expiry options activity indicates expectations for Bit coin to rise to $105,000 or even $115,000 by Christmas, with the latter strike price showing the highest open interest."
BTC Price Forecast: Who Will Step In to Buy at These Prices
According to the research firm, "This dynamic situation could trigger a small gamma squeeze, potentially dragging Bit coin's price to these levels. Therefore, $100,000 may just be another checkpoint on Bit coin's upward trajectory."
BTC is currently trading at $98,675. Sustained buying momentum could push the coin back to its all-time high of $99,500 and potentially beyond. Establishing this level as support could lead to a surge to $100,000 and beyond.
However, if buying pressure weakens, BTC's price could drop to the next major support at $88,816. This would negate the above positive outlook.
