Bitcoin surged over 2% in the last 24 hours, surpassing $112,000. Dan Tapiero, founder of 50T Funds, expressed his views on his X account, stating that the bull market is still in its early stages. Tapiero believes that Bitcoin’s price is on the verge of entering a new realm. He highlighted the significance of strong technical formations, noting that the current market structure presents historical opportunities for investors.
Bitcoin vs Gold: A Comparative Analysis
Tapiero drew a comparison between Bitcoin and gold, suggesting that the largest cryptocurrency has yet to achieve a true breakout. Despite gold being a traditional wealth preservation asset, Bitcoin remains undervalued. The renowned investor emphasized a substantial cup-and-handle formation that is likely to propel the price to new heights, anticipating a strong upward trend in the coming period.
Tapiero urged investors to recognize the opportunity at current levels, underlining that the bull season has not yet commenced technically. He noted the limited resistance levels in the market, suggesting that the price is entering a new discovery phase. The analyst forecasted that the all-time high near $124,000 could be challenged, supported by a significant increase in trading volume.
Recent data indicates that Bitcoin surged from $109,000 to $112,375 on a daily basis. Meanwhile, trading volume increased by 72%, reaching $41.5 billion. The aggressive buying by investors strengthens the potential for the price to set new records.
Macroeconomic Conditions and Regulatory Shifts
Tapiero noted that not only technical indicators but also macroeconomic conditions support the upward momentum. Arguing that short-term U.S. interest rates at 4% are unsustainable, he foresees a shift towards riskier assets as the dollar depreciates. In this environment, Bitcoin’s allure is anticipated to increase further.
Additionally, the new administration in the U.S., effective January 20, 2025, seems to have a more lenient approach towards cryptocurrencies. Tapiero highlighted the impact of the GENIUS Act’s implementation, which has expanded the space for stablecoins within the traditional financial system. These regulatory shifts could boost institutional interest, potentially accelerating upward movements in price.
Innovations in the cryptocurrency market also feed bullish expectations. ETFs, tokenization, DeFi applications, and stablecoin solutions are strengthening Bitcoin’s ecosystem, with prominent figures like Mike Novogratz predicting the price could reach $200,000. When combining all these factors, it aligns with Tapiero’s assertion that the market might be on the brink of a significant surge.