Bitcoin Could Reach $115,000-$120,000 by Year-End, Says InvestAnswers

The host of the popular YouTube channel InvestAnswers has outlined potential year-end price targets for Bitcoin, as the cryptocurrency struggles to find the bottom of its correction. The analyst used the global M2 money supply, which measures the amount of money circulating within the financial system, to forecast potential price targets for Bitcoin. The premise is that a portion of the newly created money supply could flow into Bitcoin.

According to the analyst's models, if approximately 0.5% of the newly created supply were to flow into Bitcoin, the price could rise to around $115,000. This forecast is based on the current Bitcoin market cap of $1.637 trillion and the circulating supply of 15 million Bitcoins, with an estimated 5 million lost. If 1% of the new level of assets were to enter the Bitcoin market, the price could potentially reach $146,000. However, the analyst believes that a more realistic scenario would involve a smaller percentage, such as 0.25% to 0.5%, depending on factors like adoption rates and nation-state strategies.

The analyst also speculated on the potential impact of a nation-state printing fiat currency to buy Bitcoin, suggesting that such a move could significantly increase the price of Bitcoin. The first nation to adopt this strategy could gain a competitive advantage, potentially driving the price much higher than current forecasts.

The analyst's target price for Bitcoin has been around $119,000 to $120,000 for some time, a prediction that has remained consistent since 2023. This target is based on the assumption that a reasonable portion of the new global M2 money supply will flow into Bitcoin, potentially increasing its price by 37.58%. While some analysts predict much higher prices, such as $500,000 or $250,000 by the end of the year, the InvestAnswers host remains cautious, suggesting that such predictions are unlikely.

At the time of writing, Bitcoin is valued at $82,100. The analyst's forecast provides a more conservative outlook compared to some of the more optimistic predictions circulating in the market. The price target of $115,000 to $120,000 reflects a balanced view that considers both the potential for increased adoption and the uncertainties surrounding nation-state strategies and market dynamics.