Bitcoin Consolidates Near $124,000, Billionaire Investor Projects “Massive Rally” Ahead
Bitcoin (BTC) is trading just below $124,000. It has been very stable since it closed at a record high of $123,500 on Sunday. The top crypto
Quick overview
- Bitcoin is currently trading just below $124,000, maintaining stability after reaching a record high of $123,500.
- Billionaire investor Paul Tudor Jones believes Bitcoin has significant growth potential due to rising US budget deficits and favorable monetary conditions.
- Technical indicators suggest a positive outlook for Bitcoin, with potential short-term targets between $130,000 and $135,000.
- Recent on-chain data indicates increased activity from whale investors, contributing to Bitcoin's resilience in the market.
Bitcoin BTC/USD is trading just below $124,000. It has been very stable since it closed at a record high of $123,500 on Sunday. The top cryptocurrency’s strength around its all-time high of $125,700 comes as billionaire investor Paul Tudor Jones sees a lot of room for growth, thanks to record-high US budget deficits and good monetary circumstances.
Fiscal Deficit Fuels Risk-On Thesis
Tudor Jones says that the US financial markets are still a long way from being in a bubble. He points to the government’s growing debt crisis as a major reason why Bitcoin and other risky assets are going up. The Congressional Budget Office says that President Trump’s “One Big Beautiful Bill,” which was enacted in July and prolonged tax cuts and lifted the debt ceiling, will have a $2.1 trillion deficit effect by 2029.
The dynamics are very interesting for Bitcoin bulls: For the first time ever, the US government will have to pay more than $1 trillion in interest on its debt each year. By 2026, the debt-to-GDP ratio will be 127%. Foreign investors own 33% of US Treasuries, which is raising worries about inflation and currency devaluation. This is naturally increasing demand for other forms of value, such as Bitcoin.
Tudor Jones talks about the dot-com bubble in 1999, but things seem better now for long-term benefits. The Federal Reserve hiked interest rates throughout 1999, and they were at 5.5% when the year 2000 began. However, it looks like interest rates will go down in the near future. The Fed is also not anticipated to shrink its balance sheet over the next 12 months, which will keep speculative assets liquid.
BTC/USD Technical Structure Supports Continuation Pattern
Across a range of timeframes, Bitcoin’s technical underpinning is still very optimistic. Axel Adler Jr., a researcher, says that BTC is near the upper limit of its 21-day Donchian channel at $125,200. The structural shift composite indicator shows +0.73, which means that buyers are still in charge and pullbacks are contained.
The futures flow index is at 96%, and the price is well above its 30-day fair value of $117,500, which shows that the market is quite positive. This setup usually comes before a short period of consolidation before things start to move again. The Profit/Loss Block score, on the other hand, stays at a maximum of +3, which means that most holders are still making money. This is consistent with the historical pattern of dip-buying behavior.
The short-term holder MVRV ratios, on the other hand, are getting close to the +1 range at around $133,000. This could mean that there will be resistance as recent buyers try to take their profits.
Two Scenarios for Near-Term Price Action
- After the record weekly close on Sunday, economists see two likely scenarios for the market to keep going. The first is a momentum-based breakout in which Bitcoin stays between $122,000 and $124,000, creating a high-timeframe foundation while volatility decreases. This pattern usually comes before a sluggish grind toward new highs that leads to a gradual trend growth.
- If Bitcoin goes back to its normal price, it might test important exponential moving averages in the $118,500 to $120,000 zone. If support stays over $118,000, this kind of retreat would reset short-term leverage and reestablish demand while keeping the structure intact.
Recent on-chain data shows that whales have been more active since the all-time high. For example, whale address “3NVeX” sent $200 million to Binance shortly after the peak. This caused a short-term drop in prices below $123,000, but Bitcoin rapidly bounced back to its present levels, showing that the market remains strong.
Bitcoin Price Prediction and Market Outlook
As a way to protect against inflation and fiscal hardship, Tudor Jones suggests putting money into growth equities, gold, and Bitcoin. He thinks there will be a “massive rally” that might be “much more potentially explosive than 1999.” However, he stresses that true speculative weariness is still a long way off.
Bitcoin’s market valuation of $2.5 trillion is small compared to gold’s $26 trillion and the S&P 500’s $57 trillion. If even a little 3% of the $7.37 trillion in money markets were to be used, that would mean $200 billion coming in, which might cause prices to go up a lot.
The S&P 500’s forward price-to-earnings multiples are 23 times, which is much lower than the 25 times high recorded in 2000. This supports Tudor Jones’s idea that risk-on momentum will continue. If Bitcoin stays above $120,000, both the technical and fundamental picture imply that it might go up much more. Based on current momentum and structural posture, short-term targets are between $130,000 and $135,000.
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