Rising fiat supply from military and AI infrastructure spending could drive Bitcoin to $126,000 this year, says analyst.
Bitcoin could surge to $126,000 in 2024 as accelerating fiat money printing, driven by AI and electrification capital expenditures, devalues traditional currencies. Analysts cite geopolitical tensions, including the Iran conflict, as inflationary catalysts prompting increased military and domestic infrastructure spending over U.S. Treasurys and equities.
The crypto market hit a $4.28 trillion capitalization in October but retreated late last year. Bitcoin has since rebounded, trading between $79,467 and $82,496 over the past week, up 31% from its February 6 low of $62,822. Gold, by comparison, rose just 2% in the same period, from $4,581 to $4,710.
Expectations of Federal Reserve policy easing to finance geopolitical conflicts may further boost Bitcoin, which has outperformed gold and U.S. tech stocks since late February. Analysts argue politicians will support money printing to address perceived economic and military necessities.