Bitcoin's price has been the subject of much discussion this week, with several factors contributing to its fluctuations. While the market is in a state of uncertainty, many experts believe that the Bitcoin bulls are still on track to reach their year-end target of $100,000.
One of the key factors influencing Bitcoin's price this week was the news about the US inflation rate, which reached a 30-year high. This news caused a sell-off in global markets, negatively affecting Bitcoin's price. However, many experts believe that the inflation rate could actually benefit Bitcoin in the long run, as it could drive more investors towards the cryptocurrency as a hedge against inflation.
Another important factor was the launch of the Bitcoin futures ETF in the US, which was expected to boost Bitcoin's price. However, the impact of the ETF launch was smaller than expected, and it did not prevent Bitcoin's price from dipping below the $60,000 level.
Despite these challenges, Bitcoin bulls remain optimistic about the cryptocurrency's prospects. They continue to emphasize Bitcoin's strong fundamentals, including its scarcity and its potential as a store of value. Additionally, they point out that Bitcoin's price has historically shown a strong correlation with the stock-to-flow (S2F) model, which predicts a price of $100,000 by the end of the year.
Meanwhile, Bitcoin's network fundamentals remain strong. The hash rate, which is a measure of the computational power of the Bitcoin network, has recovered from the drop caused by China's crypto mining ban. This recovery indicates that the network is robust and resilient, which could potentially support a future price increase.
In conclusion, while Bitcoin's price has faced some challenges this week, many experts believe that the cryptocurrency is still on track to reach its year-end target. The combination of strong fundamentals, potential benefits from the inflation rate, and the resilience of the Bitcoin network could support a bullish outlook for Bitcoin in the coming months.