Bitcoin Could Hit $100,000 by Year-End, Says Fundstrat Strategist

Sean Farrell, head of digital asset strategy at Fundstrat, believes Bitcoin could reclaim the $100,000 level before the end of the year. Despite rising Treasury yields typically signaling trouble for risk assets, Farrell argues that this time, they might set up Bitcoin’s next major move. He points out that Bitcoin has already formed a durable cycle low, indicating the start of a new upward cycle. While his earlier prediction of $115,000 appears out of reach for this year, he remains optimistic about surpassing $100,000.

Farrell attributes this optimism to the current economic environment, particularly the high levels of U.S. debt and fiscal deficits. With the 10-year Treasury yield at its highest since 2007, markets are bracing for multiple rate hikes. Farrell describes this tension as a bullish case for Bitcoin, suggesting that higher yields exacerbate existing fiscal issues, potentially leading to further monetary debasement and crypto outperformance. He also highlights recent Treasury actions, such as larger buybacks of long-dated Treasuries financed by issuing short-term bills, as a form of market intervention that could act like stimulus.

The potential demand for Bitcoin is further fueled by the SEC’s innovation exemption, which requires tokenized stocks to be paired with stablecoins or money market funds. Farrell anticipates that trillions of dollars in equities moving on-chain could increase demand for short-term bills, benefiting Bitcoin and other cryptocurrencies. He notes that Ethereum has been the strongest performer in the third quarter, while Solana continues to trade as a higher-risk play on the same theme.

Farrell cautions that the path to higher prices won’t be smooth. He expects possible pullbacks of up to 10%, but advises investors against leveraged positions, noting that buyers are likely to step in quickly on any dips. Overall, he recommends a more aggressive approach for medium to longer-term investors.