Bitcoin's Floor Price Set to Surge Past $40,000

Coin WorldWednesday, Feb 12, 2025 8:49 am ET
1min read

Bitcoin's floor price has the potential to exceed $40,000, according to recent market trends and economic indicators. As Bitcoin's price approaches critical support levels, analysts highlight that the cryptocurrency could see its "floor price" stabilizing above $40,000.

ARK Invest's latest report indicates that the aggregate cost basis for Bitcoin has surged to an all-time high, reflecting investor confidence despite market volatility. This surge, which reached an impressive $40,980 at the end of 2024, represents an 86% annual increase and showcases the growing value attributable to BTC assets across the board. Many now see this heightened aggregate cost as a potential support area, offering crucial resilience against future market corrections.

Notable figures in the crypto space, like Adam Back, the co-founder of Blockstream, are pointing towards the recent crossing of the psychological threshold at $40,000 as a critical milestone. Back noted that this shift in the 200-week moving average indicates a stabilizing floor for Bitcoin pricing, suggesting investors should reconsider purchasing at these levels. Analysts view this moving average as essential for determining the overall momentum in the crypto space, effectively filtering out short-term price fluctuations.

Bitcoin's short-term price trajectory is notably influenced by macroeconomic factors, particularly the upcoming release of the US Consumer Price Index (CPI). Analysts, such as Iliya Kalchev from Nexo, stress that market responses to such data are pivotal. A higher-than-anticipated CPI could redirect focus back to central bank interest rate policies, potentially inducing fluctuations in Bitcoin's price.

Amid these economic considerations, investors are also monitoring international data, including Japan's January PPI and various European inflation metrics. These indicators are crucial as they may give context to the broader economic health and stability—factors that heavily influence Bitcoin's appeal as both a hedge against inflation and a volatile asset. Kalchev stated that the stage is set for a week where both bullish potential and volatility remain in play, underlining the current precariousness in market sentiment.

Despite facing significant selling pressure, Bitcoin has demonstrated remarkable resilience, managing to stay above the $95,000 mark as of early February. This stability is particularly notable given the context of geopolitical tensions impacting global markets, such as trade wars, which have historically contributed to increased volatility in