Bitcoin Needs Fresh Catalyst to Hit $100K Target

Bitcoin's recent $5 billion short squeeze has led to a strong recovery, but its next big move will depend on U.S. policy and institutional demand, according to Charles Edwards, founder of Capriole Investments.

In an interview with John Gillen, Edwards said that the market needs to stay above $70,000 for the bullish outlook to continue, as it has already broken above two important levels: $65,000 and $70,000. Falling below $70,000 could weaken the current setup, while the bigger support is around $60,000.

Edwards also pointed out that institutional buying is adding more support, with institutions reportedly buying around 160% of the Bitcoin produced by miners each day through spot ETFs. However, he expects at least one more rate hike this year from the Federal Reserve, which could make the path toward $100,000 harder if financial conditions remain supportive.

Edwards sees Bitcoin moving toward the $90,000 range and possibly around $100,000, but notes that a clear new all-time high is unlikely without a fresh catalyst. This could come from the U.S. government officially buying Bitcoin or progress on quantum computing risks.