First, the US central bank (Federal Reserve) has officially ended its program of removing money from the economy (Quantitative Tightening or QT), which means they are now moving toward a policy that makes money more easily available (accommodating monetary policy). This boost in available money, or liquidity injection, has happened at the same time as a major shift in how large financial institutions view Bitcoin.
Second, investment firm Vanguard, which manages $9 trillion, has made it easier for its clients to access Bitcoin through certain investment products (third-party crypto ETFs).
Third, technical analysis suggests a huge move is coming. The price charts show that the price swings (volatility) have been at historic lows, a pattern that has always happened right before a massive, rapid price increase (parabolic price movements).
While these factors suggest the price is heading strongly upward and could soon go above $100,000, there is an immediate risk: the market remains fragile.
There is not enough trading volume right now (market depth has not fully recovered), meaning there isn’t much liquidity. In this kind of environment, the market is highly prone to large, sudden price swings, making it very sensitive to any bad news or unexpected selling that forces traders to quickly close their positions (liquidation events).
However, because the fundamental drivers such as money flowing from central banks and real demand from major financial institutions are so strong, experts believe this price momentum is likely to last and is more than just a temporary fluctuation.
