Bitcoin (CRYPTO: BTC) might witness a 200% surge in its current cycle, as predicted by Real Vision analyst Jamie Coutts, potentially soaring to a six-figure valuation.

What Happened: Coutts anticipates that Bitcoin will undergo a 2X to 3X increase in this cycle. This projection is a step down from the 19X and 6X surges of 2017 and 2020 respectively.

For Bitcoin to hit this target, Coutts shared on X that the U.S. Dollar Index (DXY) must drop significantly below 101, a shift that would be instigated by continued central bank injections.

The DXY, which gauges the strength of the US dollar against other major global currencies, currently stands at 102.65.

The global liquidity model at Coutts, which previously forecasted a 75% increase in Bitcoin’s value in November 2023, now suggests another upward trend.

This anticipation is credited to significant contributions from the Bank of Japan (BoJ) and the People’s Bank of China (PBoC), which provided 41% of the global liquidity infusion last month.

Also Read: Crypto Analyst Predicts Bitcoin To Blast Off To $90,000 If This Happens

“Over the past month; the BoJ and the PBoC have added $400 billion and $97 billion, respectively; the broad global money base (credit) has expanded by $1.2 trillion, which has been significantly aided by a sharp decline of the U.S. dollar. This suggests that it is coordinated with the Federal Reserve’s consent,” Coutts stated.

Why It Matters: The predicted surge in Bitcoin’s value is significant, considering the cryptocurrency’s volatile nature. The forecasted increase is based on the assumption that the U.S. Dollar Index will decrease, which is contingent on continued central bank injections.

This prediction also highlights the role of major global banks like the BoJ and PBoC in influencing Bitcoin’s value. Their contribution to global liquidity has been identified as a key factor in triggering Bitcoin’s bullish phase.

The prediction also underscores the coordinated efforts of global banks, including the Federal Reserve, in managing the global money base.

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