Bitcoin is projected to reach $116,000 by the end of July, buoyed by three favorable macroeconomic factors, according to Markus Thielen, head of research at 10x Research. This anticipated increase represents a 6.45% rise from its current price of $108,990. Thielen points to strong inflows into spot Bitcoin exchange-traded funds (ETFs), ongoing uncertainty surrounding the US Federal Reserve, and a notable decrease in Bitcoin supply on exchanges as key catalysts. Since May 1, US-based spot Bitcoin ETFs have seen approximately $9.91 billion in inflows, despite experiencing recent net outflows. Thielen speculates that political pressure on the Federal Reserve from Donald Trump may have contributed to these inflows, suggesting that a new Fed chair more favorable to rate cuts could further benefit Bitcoin. Additionally, Bitcoin balances on crypto exchanges have been declining for 98 consecutive days, indicating rising scarcity, which historically precedes significant price hikes. These factors collectively suggest that Bitcoin might be positioned for a breakout this month.

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