'Doomsday Rally,' Trader Says, Could Cause Bitcoin to Soar to $120,000

Given geopolitical events and the need for an investment hedge, some traders believe bitcoin might rise in the next months despite a 10% weekly decrease. Bitcoin's correlation with traditional market assets is significant, but some investors consider it as a hedging and investment alternative, expecting its price to reach $120,000 in the coming months.

Bitcoin {{BTC}} may experience a spike in the coming months due to international politics and investment opportunities, despite a 10% weekly decline affecting confidence, according to traders.  

Bitcoin, established after the 2008 financial crisis, is considered a geopolitical hedge. BTC has been heavily associated with traditional market assets for years, yet some traders believe the hedging thesis remains valid.  

Bitcoin is a plausible doomsday asset in 2024, since its connection to Gold just increased, and investors continue to diversify away from traditional financial assets, said Tyr Capital chief investment officer Edouard Hindi in an email to CoinDesk.  

“As global geopolitics worsen and the middle classes find ways to protect their wealth, the ETF is leading this Doomsday rally and we should expect $120,000 to be hit in the coming months,”. Crypto markets collapsed over the weekend as tensions between Iran and Israel rose as profit-taking preceded the bitcoin reward halving on April 20, which would cut network incentives by 50%.  

Major tokens lost 18% over the weekend compared to last week's peak prices before recovering on Monday. Israel evaluated its response to Iran's firing of over 300 drones and missiles into its territory in Asian morning hours on Tuesday.  

Other bitcoin ETF inflows have decreased in the past week. Only BlackRock's IBIT experienced inflows on Monday, while 10 other ETFs witnessed withdrawals. Some market observers believe bitcoin's short-term price activity will shape the crypto market in the coming weeks.  

US stock market sell-offs lowered global risk appetite late on Monday. In a daily report, FxPro senior market analyst Alex Kuptsikevich said the market is reaching March lows. “This is a crucial moment for market direction in the coming weeks. A rebound from this area will allow an early recovery to recent highs. A drop below would certainly cause more position liquidation.”  

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