Detroit Residents to Pay Taxes with Cryptocurrency by Mid-2025
Detroit stated that accepting crypto for tax payments was a step in its larger initiative to "modernise and enhance" its payment systems.
Key Takeaways:
Critical Support and Momentum: Bitcoin recently surpassed the crucial $90,000 mark, significantly above its 50-, 100-, and 200-day moving averages, indicating strong bullish momentum. Maintaining these support levels is critical for the upward trajectory to continue.
Institutional Demand and ETFs: Increasing institutional interest, mainly through Bitcoin Exchange-Traded Funds (ETFs), has been a primary driver. Significant inflows into ETFs reflect growing confidence among institutional investors, bolstering market optimism about a rally toward $100K.
Caution Amid Overbought Conditions: Despite the positive outlook, technical indicators like the Relative Strength Index (RSI) suggest Bitcoin is in overbought territory, which may lead to short-term consolidation or pullbacks. However, historical patterns in post-halving years, coupled with seasonal factors, support the potential for continued gains.
The cryptocurrency market has been buzzing with speculation, and Bitcoin (BTC) is again at the centre of attention.
Overview
Data from TradingView revealed BTC’s price dipped below $87,000 into the daily close. United States (US) inflation data, especially the October Producer Price Index (PPI) report, revealed a resurgence in inflationary pressures as the Federal Reserve lowered interest rates. Analysts believe BTC could surge to $100,000 by Thanksgiving 2024, provided bulls defend a critical price level. This optimistic projection stems from technical signals, macroeconomic factors, and renewed interest in digital assets.
Critical Support at $35,000: The Line in the Sand
Analysts have identified $35,000 as a critical support level for BTC’s upward trajectory. This threshold has emerged as a psychological and technical barrier, forming the foundation for bullish momentum. Recent price action has shown BTC consolidating above this level, reflecting a battle between buyers and sellers. Historically, holding above key supports during periods of consolidation has often preceded substantial upward moves in BTC.
A sustained defence of $35,000 could signal market participants’ confidence, setting the stage for further gains. In addition, on-chain data supports this outlook. Metrics like rising wallet activity, declining exchange reserves, and increasing long-term holder supply suggest strong accumulation trends. These indicators bolster the argument for a robust foundation at the current price level.
Institutional Interest and Macroeconomic Catalysts
Macroeconomic tailwinds and renewed institutional interest support BTC’s rally. The Federal Reserve’s shift toward a dovish stance amid signs of cooling inflation has reinvigorated risk-on sentiment. As traditional investors seek alternatives to hedge against potential economic uncertainty, BTC’s appeal as “digital gold” is gaining traction. Major financial institutions also play a pivotal role. The recent approval of several BTC exchange-traded funds (ETFs) has legitimised the asset class and made it more accessible to retail and institutional investors.
BlackRock, Fidelity, and other asset management giants have signalled strong demand for these products, contributing to BTC’s resurgence. Furthermore, international adoption continues to grow. Countries like El Salvador and African emerging economies are embracing BTC for cross-border transactions and as legal tender, driving organic demand. Combined with a diminishing supply due to the upcoming halving event, these factors could amplify BTC’s price trajectory.
Thanksgiving $100K Target: What Lies Ahead?
Reaching $100,000 by Thanksgiving is an ambitious but attainable target. For this to materialise, BTC must sustain its bullish momentum and break past significant resistance levels, particularly around $45,000 and $60,000. Analysts expect these thresholds to test market conviction, representing historical points of heightened activity and profit-taking.
Technical indicators, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), suggest that BTC is not overbought territory, leaving room for further growth. Additionally, market sentiment remains cautiously optimistic, with fear and greed indexes trending toward greed but not yet reaching euphoric levels, which often precede corrections. A $100,000 BTC price would likely attract mainstream attention and legitimise the crypto market. However, investors should remain vigilant about potential risks, including regulatory uncertainties, unexpected macroeconomic developments, and the crypto market’s inherent volatility.
Bitcoin’s journey to $100,000 by Thanksgiving hinges on bulls defending the $35,000 support level and navigating critical resistance points. With institutional interest, macroeconomic catalysts, and technical strength aligning, the cryptocurrency market could witness a historic rally. However, as always, the road to such milestones will likely be marked by volatility and uncertainty. Investors and traders should stay informed and cautious as the market unfolds.