A forecast has emerged that bitcoin's price will top 200 million won within the next year. The assessment is that, after the end of the United States–Israel and Iran war, a rate cut by the U.S. Central Bank could push it to a record high.
According to the virtual asset industry on the 24th, Korea-based web3 research and consulting firm Tiger Research set bitcoin's 12-month price target at $143,000 (about 211.2 million won). The analysis said the upside potential has expanded 103% from bitcoin's current price.
Tiger Research cited the following factors for bitcoin surpassing 200 million won: ▲ a record high in global liquidity drawing institutional funds back in ▲ the U.S. Federal Reserve (Federal Reserve System) maintaining a rate-cutting stance after the Iran war fallout eases ▲ an exit from the undervalued range in on-chain indicators.
Bitcoin spot exchange-traded funds (ETF) that had recorded net outflows for five straight months turned to net inflows in March. In particular, cumulative inflows into bitcoin spot ETFs over the past three weeks exceeded $1.8 billion. That is the largest since mid-January.
Digital Asset Treasury (DAT), a U.S. corporations strategy for virtual asset treasury, bought an additional 34,164 bitcoins in the third week of this month, increasing its total holdings to 815,061. At market prices, that amounts to $61.56 billion (about 90.6 trillion won). This surpasses iShares Bitcoin Trust (IBIT), BlackRock's bitcoin spot ETF.
The U.S. consumer price index (CPI) for March surged to 3.3% as the Strait of Hormuz was blockaded and oil prices spiked following the United States–Israel strike on Iran at the end of February this year. In response, the Fed trimmed its projection for rate cuts this year to one in the March dot plot.
However, since mid-month the Strait of Hormuz has been temporarily reopened, and oil prices are stabilizing. The market expects that if CPI comes in below expectations, it will bolster the Fed's rate-cutting stance.
Yoon Seung-sik, head of research at Tiger Research, said, "If conditions such as sustained ETF inflows and a shift to rate cuts by the Fed after geopolitical risks ease come together, bitcoin can certainly reach $143,000."