• Glassnode co-founders Jan Happel and Yann Allemann predict a promising future for Bitcoin, projecting its price could reach $120,000 by July, influenced by the expected depreciation of the US dollar.
  • The dollar index (DXY)’s anticipated shift into a downtrend, as suggested by Elliott Wave Theory, is expected to impact risk assets, including cryptocurrencies positively.

In a recent analysis, Glassnode co-founders Jan Happel and Yann Allemann have shed light on a highly optimistic future for Bitcoin and the broader cryptocurrency market, driven by anticipated movements in the US dollar’s value. According to their insights, the dollar index (DXY) — a measure of the dollar’s strength against a basket of major foreign currencies — is on the brink of concluding its recovery phase, poised to enter a period of decline. This prediction is based on the principles of Elliott Wave Theory, which postulates that market movements occur in discernible phases. At this juncture, the DXY is believed to be completing its second phase, an upward trajectory, before anticipated descent to new lows.

This expected depreciation of the US dollar could catalyze a significant uptick in the valuation of risk assets, including cryptocurrencies. Happel and Allemann’s analysis extends to project a remarkable growth spurt for Bitcoin, estimating a potential price target of $120,000 by July of this year. This projection leverages Fibonacci extensions, drawing parallels from corrections observed in the cryptocurrency’s past bull markets, notably those in 2017 and 2020. The analysts suggest that Bitcoin is likely to emulate the correction patterns seen during these periods, subsequently embarking on a swift appreciation in value.

At the present moment, Bitcoin is trading at $44,657.00, already reflecting a robust position within the financial market. The correlation between the strength of the DXY and the performance of risk assets underscores the significant impact that global macroeconomic conditions have on the cryptocurrency market. The analysis by Happel and Allemann underscores a broader narrative of Bitcoin’s resilience and its potential for rapid growth, influenced by macroeconomic factors such as currency depreciation.

This optimistic outlook for Bitcoin’s immediate future indicates a potential rapid value increase propelled by the US dollar’s weakness and its subsequent effect on risk assets. The relationship highlighted between DXY’s strength and risk asset performance illuminates the complex dynamics at play within the global financial ecosystem, affecting the cryptocurrency market. As Bitcoin continues to navigate these macroeconomic waters, its projected ascension to $120,000 by July reflects not just a milestone for the cryptocurrency but also a testament to its growing influence and integration within the broader economic landscape.

By Joadin Maina

Beyond the hype, I untangle the web3 revolution, guiding curious minds through the labyrinth of decentralized possibilities.