Global investment firm VanEck has reiterated its forecast for Bitcoin to reach $180,000 at the peak of the current market cycle. Analysts predict that supportive U.S. regulations and increased interest from institutional investors will be key drivers for this significant price surge.
Bull Market Just Beginning
In a report published on November 21, VanEck analysts Nathan Frankovitz and Matthew Sigel stated that the crypto bull market is in its early stages. They believe Bitcoin could hit $180,000 within the next 18 months, citing factors like improving regulatory clarity in the U.S. and greater involvement from institutional players.
The recent rally in Bitcoin’s price, which climbed to $99,800 in the last 24 hours, has been partially attributed to the positive sentiment surrounding Donald Trump’s presidential election win. At the time of writing, Bitcoin is trading at $98,500, just shy of the $100,000 milestone.
Funding Rates Signal Possible Overheating
While the bullish outlook persists, VanEck’s report also highlights potential risks. Funding rates for perpetual futures contracts have surpassed 10% since November 11, indicating strong short- and medium-term momentum. Historically, elevated funding rates have been associated with heightened optimism but can also signal market overheating.
“This trend suggests stronger returns in the next 30 to 90 days, but it also warrants caution as such levels have sometimes preceded corrections,” the analysts noted.
Summary Review: VanEck predicts Bitcoin could reach $180,000 during this market cycle, supported by favorable regulations and institutional demand. However, high funding rates on futures contracts hint at possible market overheating, urging caution despite the bullish sentiment.
Disclaimer: Nothing in this article, or any content from Web30 News, should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves risks, and investors should be aware that capital is at risk and returns are never guaranteed. Please conduct thorough research and consult with a qualified financial advisor before making any investment decision.
