Introduction to the Bitcoin Rally
The Bitcoin rally has indeed recorded a remarkable increase of approximately 20 percent this week, indicating growing market attention and positive sentiment among investors. The price rose from around $109,000 at the beginning of July to over $118,000 by mid-July, after previously breaking the $112,000 mark.
Drivers of the Current Rally
This strong increase was fueled, among other things, by political comments: A statement by former U.S. President Trump, who called the current Fed interest rate hikes too high and demanded rate cuts, led to a rapid increase in the price of Bitcoin on July 9. The prospect of lower interest rates typically increases market liquidity and encourages riskier investments such as cryptocurrencies.
Long-Term Perspectives
Experts still see significant potential for Bitcoin despite the new all-time high: Binance founder Changpeng Zhao (CZ) even refers to the current price as a “dip” and predicts long-term prices ranging from several hundred thousand to a million dollars. Reasons include the limited total supply of Bitcoins and the increasing money supply in fiat currencies.
Long-term forecasts are also optimistic. Analysts expect a further significant increase in 2025, with possible prices above $150,000 by the end of the year and even over $200,000 by mid-2026.
Conclusion
In summary, the current Bitcoin rally with an increase of around 20 percent this week is a sign of growing market acceptance, supported by macroeconomic factors and optimistic future prospects from experts.