Bitcoin hit a new high, trading suddenly at $99,500 during Friday’s trading session before falling slightly. Currently, this digital currency is valued at 98,675 USD.
With trading activity increasing as the market expects a breakthrough above the psychological $100,000 threshold, digital asset research firm 10X Research predicts that Bitcoin could climb to $115,000 by Christmas .
Why Bitcoin Could Hit $115,000 Soon
In its new report, 10X Research found that the BTC market has been flooded with liquidity over the past few weeks, a key factor that could push Bitcoin towards the expected $115,000 mark.
Stablecoin issuer Tether issued $10 billion in the past month. At the same time, Circle also added $3 billion in the same period, creating momentum for the market. This has led to a corresponding increase in stablecoin flows to crypto exchanges over the last month. In one post post October 21 One on X, Leon Waidmann, head of research at Onchain Foundation, confirmed this.
“Stablecoin flow to exchanges reaches 9.7 billion USD in 30 days! This is the largest monthly capital flow ever. Stablecoin liquidity is back. Speculative demand continues to explode,” he said.
The increase in stablecoin flows into Cryptocurrency exchanges is a sign of excitement. This capital inflow often leads to increased buying pressure, pushing Crypto asset values higher.
“This massive wave of liquidity is reflected in soaring trading volumes, with spot trading volumes regularly exceeding $200 billion per day. Cryptocurrency market capitalization has exploded past $3.2 trillion, equivalent to the size of the UK stock market,” 10X Research wrote.
The activity of traders in the options market of the BlackRock Bitcoin ETF (IBIT) is another reason why its price could climb to $115,000 by Christmas. 10X Research found that as of October 22, calls on IBIT outnumbered puts by a ratio of 5.5 to 1, up from 3.8 to 1 on Thursday. Call options buyers are also targeting strike values in the 110-120% range, suggesting they expect the Bitcoin price to surpass $100,000 soon.
“Options buyers are focused on strikes in the 110-120% range, indicating that they do not anticipate a short-term cap at Bitcoin’s psychological $100,000 threshold. Instead, October options activity suggests expectations that Bitcoin will rise to $105,000 or even $115,000 by Christmas, with the latter exercise having the highest Open Interest,” reports said.
BTC Price Prediction: It All Depends on Current Buyers
According to the research firm, “this dynamic could trigger a small gamma squeeze, driving Bitcoin price towards these levels. Therefore, $100,000 could be just another milestone on Bitcoin’s upward path.”
BTC is currently trading at $98,675. Sustained buying momentum could push the coin back to its peak of $99,500 and potentially higher. Establishing this level as support could pave the way for a rally to $100,000 and higher.
Conversely, if buying pressure subsides, BTC price could drop to $88,816, where its next key support lies. This will negate the optimistic outlook mentioned above.
