Bitcoin in 'ripe conditions' for new all-time high as it holds above $107,000: analysts

The world's largest Cryptocurrency held its position above $107,000 late night Thursday, with analysts noting bullish momentum, some eyeing a potential breakout to a new record high.

According to The Block's price data, Bitcoin edged down 0.5% in the past 24 hours to trade at $107,413 as of 11:30 p.m. ET on Thursday. The Cryptocurrency has remained around the $107,000 level since Wednesday after recovering from the dip under $100,000 last week.

"We think that conditions are ripe for Bitcoin to surpass its previous all time high of about $112k, especially given that the Iran-Israel conflict seems to be over for the time being," said Jeff Mei, chief operating officer at BTSE exchange.

Mei said he expects easing inflation fears and the prospect of tariffs being softened are putting additional pressure on U.S. Federal Reserve Chair Jerome Powell.

"It's likely that he would either cut rates soon or be replaced earlier than expected, both of which would propel markets upwards," Mei said. "Investors are feeling more bullish than ever."

The next FOMC meeting is expected to take place at the end of July, with the CME Group's FedWatch Tool currently indicating a 20.7% chance that interest rates would be cut by 25 basis points.

$BTC Markets Crypto Analyst Rachael Lucas also told The Block that a new all-time high feels more like a matter of timing than a possibility.

"Several catalysts are in play: ongoing institutional allocation, particularly from corporate treasuries and sovereign wealth funds; growing use cases like Bitcoin-backed mortgages; regulatory progress in key jurisdictions; and macro tailwinds such as interest rate cuts and inflation stabilization," Lucas said.

Lucas added that Cryptocurrency's growing relevance in traditional finance is worth noting, such as the recent move from the U.S. Federal Housing Finance Agency exploring crypto as an asset for mortgage application assessments.

Meanwhile, Bitcoin's fear and greed index currently points to "greed," Kronos Research Chief Investment Officer Vincent Liu pointed out, saying that this indicates that the bullish sentiment may be stretched.

"Traders should tread thoughtfully as the July 8 trade talk deadline approaches, any tension could twist the market," Liu said. "Equally, ETF inflow interruptions would unsettle the steady stream of support. These factors could fuel fluctuations."

The Trump administration has set July 8 and 9 as deadlines for finalizing trade deals with numerous countries, after which previously paused "reciprocal" tariffs on over 60 trading partners could be reinstated. The White House said it could extend the deadline, according to the WSJ.