Big news came from the Federal Reserve, they just injected $2.5 billion into the US banking system through overnight repurchase agreements and have injected $120 billion into the market this year. However, despite the massive increase in liquidity, Bitcoin price still lags behind and struggles to break above the $90,000 resistance level.
On the positive side, Visa has officially announced that cryptocurrencies will become “mainstream” by 2025, with stablecoins and AI-powered payments leading the way. This all happened as gold hit an all-time high of $4,562 an ounce and silver currently trades at $79. Both metals have been rising recently, following a pattern that saw gold ($2,075/oz) and silver ($29/oz) peak in 2020, followed by other assets starting to rise sharply.
With so much bullish news surrounding Bitcoin, it’s a bit surprising to see its price lagging, especially as gold and silver continue to break higher.
So, will Bitcoin be the next big hit?
Back in 2020, Bitcoin had a huge breakout after gold and silver hit new highs. By the end of the year, its price jumped from $11,500 to $29,000, an increase of 150%. By 2021, the cryptocurrency market capitalization has soared from approximately $390 billion to over $2 trillion. Traditional stocks such as the S&P 500 have also seen decent gains, rising 7% in 2020 and then rising 27% in 2021.
(Source – Curvo)
Now, as the Federal Reserve continues to inject liquidity into the market, Bitcoin may follow a similar path and the bear market may finally be over. The question is: when will it happen?
Currently, Bitcoin price is hovering below $90,000, but a huge volatility anomaly could lead to a breakout. Realized volatility is 37.8%, which suggests Bitcoin is actually moving, but implied volatility is much lower at 15.1%.
This mismatch between market expectations and what actually happens is historically unsustainable, and it could soon lead to higher Bitcoin prices.
Discovered: 16+ New and Upcoming Binance Listings in 2025
So why does this volatility mismatch matter? Because, simply put, it’s selling Bitcoin right now. People are buying call options (betting that the price will rise) in the expectation that the price of Bitcoin will rise. As a result, traders must chase rising prices to fulfill these bets, turning small rallies into larger runs.
There’s also the fact that one 4chan user correctly predicted Bitcoin’s October peak of $126,198 and now predicts that the price will reach $250,000 by 2026. Gemini CEO Tyler Winklevoss also tweeted that Bitcoin is “Gold 2.0” and said, “Wait until the world realizes this.” These can be the spark needed for next year’s bull market.
