10X Research suggests that Bitcoin (BTC) could soar to $115,000

On Friday, Bitcoin (BTC) attained a new all-time high of $99,500. As of this writing, the cryptocurrency is trading around $98,675.

However, analysts from 10X Research believe that this rally is far from over, predicting that Bitcoin's price could rise to $115,000 by the end of December.

Reasons Bitcoin May Soon Reach $115,000

In a recent report, the analysts at 10X Research pointed out that the BTC market has become saturated with liquidity in the past weeks. Over the last month, the issuer of the largest stablecoin by market capitalization, Tether, has released $10 billion USDT, and Circle has added another $3 billion USDC to the supply. Leon Weidmann, head of research at The Onchain Foundation, confirmed this in a recent post on X.

“Stablecoin inflows to exchanges reached $9.7 billion over 30 days — the largest monthly influx ever recorded. Stablecoin liquidity has returned. Speculative demand continues to rise,” he wrote.

Net stablecoin inflows to exchanges. Source: X

The increase in stablecoin inflows to crypto exchanges is considered a bullish indicator. This often leads to heightened buying pressure and a surge in the value of crypto assets.

“This massive wave of liquidity is reflected in increased trading volumes, with spot volumes consistently exceeding $200 billion daily. The total cryptocurrency market capitalization has surpassed $3.2 trillion, comparable to the size of the UK stock market,” 10X Research noted.

Trader activity regarding the BlackRock Bitcoin ETF (IBIT) options presents another reason for the potential spike to $115,000 by Christmas. Research from 10X showed that as of November 22, the number of call options on IBIT outnumbered puts by a ratio of 5.5 to 1, up from 3.8 to 1 on Thursday. Call option buyers are targeting strike prices in the 110-120% range, anticipating that Bitcoin's price will soon exceed $100,000.

“The focus of option buyers on strike prices in the 110-120% range suggests they do not foresee short-term resistance at the psychological level of $100,000 for Bitcoin. Instead, December expiration options indicate expectations for Bitcoin to rise to $105,000 or even $115,000 by Christmas, with the latter strike showing the highest open interest,” the report stated.

BTC Price Prediction: All Lies with Buyers

According to the research firm, “this trend could trigger a minor gamma squeeze, driving the price towards these levels. As a result, $100,000 may simply become another milestone on Bitcoin's upward trajectory.”

At the time of writing, BTC is trading at $98,675. If market participants resume aggressive buying, the asset’s price could quickly return to its all-time high of $99,500. Confirming this level as support would likely lead to a leap to $100,000 and beyond.

Bitcoin price analysis. Source: TradingView

However, a sudden shift in investor sentiment towards negativity could lead to a correction down to $88,816, where the next significant support is located.