The cryptocurrency market is seeing positive dynamics. The volatility indicator suggests that Bitcoin could reach $135,000 in the next 100 days. This statement was made by analyst Timothy Peterson, whose model, with 95% accuracy, links low levels of the CBOE Volatility Index (VIX) with increased investor confidence in risky assets.
Factors Contributing to Growth
Several factors point to optimistic prospects for Bitcoin. The CBOE Volatility Index (VIX) fell to 20, indicating a decrease in risk in the market. Also, the Bitcoin Consumer Price Index rose to 80, signaling growing optimism among investors. The Fear and Greed Index points to growing optimism and the potential for further price growth.
Impact of the Trade Deal and Inflation
The May 12 trade deal between the US and China introduced a 90-day tariff pause and led to a significant reduction in tensions. This agreement is fueling the “risk appetite” sentiment, helping to boost not only Bitcoin but also stocks.
The US consumer price index inflation rate fell to 2.3%, the lowest since February 2021. This could also contribute to increased investor confidence and increased interest in risky assets, including cryptocurrencies.
Forecasts and expectations
Analysts are hoping for a successful test and overcoming of Bitcoin’s all-time high in the region of $110,000. The Bitcoin bullish index reached a one-year high, soaring from 20 to 80. The Bitcoin fear and greed index is growing, but remains below the “congested” zone, which may indicate a balance between optimism and caution among investors.
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