Bitcoin (BTC) to $150k? Here’s How it Could Get There

TLDR

Bitcoin is currently trading in the $58,000 to $61,000 range after recovering from a recent crash.
Analysts are unsure about Bitcoin’s next move, with some suggesting it needs to break $62,000 to continue its bullish run.
Some indicators, like the Fair Value Gap (FVG) being filled, suggest Bitcoin could trade above $70,000 by the end of September.
Daniel Batten, a Bitcoin advocate, predicts Bitcoin could reach $148,000 if sovereign wealth funds (SWFs) allocate just 1% of their assets to it.
SWFs and public pension funds manage about $35.7 trillion in assets.

As Bitcoin (BTC) continues to trade in the $58,000 to $61,000 range following its recovery from a recent market crash, analysts and investors are closely watching for signs of its next big move.

The cryptocurrency market’s leading asset has shown resilience, but opinions are divided on whether it will break out to new highs or face further consolidation.

Some market watchers, like Altcoin Sherpa, note that Bitcoin is showing “lots of conflicting signals” and remains “pretty neutral in the short-term.” The analyst suggests that for a significant price surge, Bitcoin needs to reclaim the $62,000 resistance zone. A break above this level could potentially trigger a rally toward the $70,000 mark, a price point not seen since June.

$BTC still pretty unsure what’s going on; I still think this 62k resistance area needs to be broken in the coming days for us to see 70k. 200 ema on the 4h acting as a stopping point but we are about to get back to the support area in 56-58k. Pretty neutral in the short term pic.twitter.com/ArzvQDWFcw

— Altcoin Sherpa (@AltcoinSherpa) August 15, 2024

Other indicators are providing more optimistic outlooks. Crypto investor Ted Pillows highlighted that Bitcoin’s Fair Value Gap (FVG) has been filled, a pattern that preceded strong recoveries in the past. Based on historical data, Pillows suggests that Bitcoin could trade above $70,000 again by the end of September.

$BTC fair value gap (FVG) has been filled.

This happened back in 2020 top during the Covid crash.

Just like 2020, there was a strong bounceback this time as big buyers stepped in.

2020 crash tool 8 weeks to completely recover, and if that happens again, BTC will trade above… pic.twitter.com/I934WV9jEg

— Ted (@TedPillows) August 15, 2024

While short-term price movements remain uncertain, longer-term projections are gaining attention, particularly regarding institutional interest.

Daniel Batten, a recognized Bitcoin advocate, recently discussed the potential impact of sovereign wealth funds (SWFs) on Bitcoin’s price. In a podcast appearance, Batten predicted that Bitcoin could rise to over $148,000 if SWFs decide to invest even a minimal fraction of their assets.

Batten’s analysis is based on the substantial assets managed by SWFs and public pension funds, which total approximately $35.7 trillion. He calculates that a mere 1% allocation to Bitcoin from these funds could dramatically increase its value. “If a 1% deployment into Bitcoin were to happen, we can calculate based on the current ratio of dollar invested to market cap increase that it would lift Bitcoin price to over $148,000,” Batten explained.

However, Batten acknowledges that there are hurdles to overcome before such investments become reality. The primary obstacle is not a lack of interest but rather outdated investment frameworks within these funds, particularly concerning ESG (Environmental, Social, and Governance) criteria. Many SWFs are constrained by ESG investment committees that are yet to be convinced of Bitcoin’s environmental credentials.

Batten argues that the ESG criteria used by these funds are based on outdated information that no longer accurately reflects the current state of Bitcoin mining technology and its environmental impact. To address this, he has begun engaging directly with SWFs to educate their ESG committees about the latest developments in Bitcoin’s environmental profile.

Recent developments in the United States provide some encouragement for those hoping to see increased institutional investment in Bitcoin. State pension plans in Wisconsin and Michigan have made small but significant investments in Bitcoin through vehicles like Grayscale.

While these allocations are relatively small compared to the funds’ total assets under management, they have had a notable impact on market perceptions and Bitcoin’s price.

For now, Bitcoin’s short-term price action remains uncertain, with the cryptocurrency trading at around $58,500 at press time.