Bitcoin (BTC) could reach $200,000 by the end of 2024 following softer-than-expected U.S. inflation data in May, according to Matt Mena, crypto research strategist at 21Shares.
“If BTC convincingly breaks the $105,000 to $110,000 range, we may quickly see it move to $120,000 and potentially hit our year-end target of $138,500 by late summer,” Mena told CoinDesk.
The U.S. Labor Department reported a 0.1% rise in the consumer price index (CPI) for May, below economists’ 0.2% forecast. Core inflation remained steady at 2.8% annually. Durable goods CPI fell 0.1% month-over-month, reflecting limited impact from tariffs.
“This cooling inflation trend strengthens the case for potential Federal Reserve policy easing later this year,” Mena added. Traders now price in nearly two rate cuts in 2024, with a high probability of a cut by September and full pricing for October.
Other bullish factors mentioned by Mena include growing sovereign and institutional adoption, stablecoin regulation, and expanding Strategic Bitcoin Reserve programs. These could drive increased Bitcoin exchange-traded product (ETP) inflows, boosting institutional confidence and activity.
At press time, Bitcoin traded around $108,440, based on CoinDesk data.