Bitcoin’s recent surge, briefly surpassing $87,700, follows a weakening U.S. dollar and speculation around upcoming Treasury buybacks. Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, predicted this could be the “last chance” to buy Bitcoin for less than $100,000, as the U.S. Treasury repurchasing its own debt may inject more liquidity into the market. Hayes referred to these buybacks as a “bazooka” for Bitcoin’s price, which could push it well past the $100,000 barrier.

The rise in Bitcoin’s price has also been supported by macroeconomic conditions, including the weakening U.S. dollar, which reached its lowest point since March 2022. As the dollar drops, Bitcoin becomes more attractive to investors seeking a hedge.

This sentiment is further amplified by a growing correlation with gold, which has risen nearly 30% this year. Ryan Lee, Chief Analyst at Bitget Research, emphasized that a “descending wedge breakout” in Bitcoin’s technical chart supports this bullish narrative.

Global institutional interest in Bitcoin remains strong. Despite recent volatility, investment firms from Japan and the U.K. have continued to pour capital into the cryptocurrency, signaling ongoing trust in Bitcoin’s long-term potential. As Bitcoin’s price nears the $90,000 resistance level, analysts like Jamie Coutts from Real Vision forecast the cryptocurrency could climb as high as $132,000 by year-end, driven by expanding fiat money supply (M2). Coutts’ projection aligns with predictions from economist Timothy Peterson, who suggests Bitcoin could reach $138,000 within three months, considering similar market patterns in the past.

As Bitcoin’s price movements gain momentum, the political climate adds another layer of uncertainty. President Donald Trump’s calls to oust Federal Reserve Chair Jerome Powell have increased expectations of a potential rate cut, which could further weaken the dollar and benefit Bitcoin’s rally. The implications of this political pressure, combined with the ongoing macroeconomic factors, could set the stage for Bitcoin’s continued ascent.

Despite the bullish outlook, some analysts remain cautious. Michaël van de Poppe warned that weekend price rallies can be misleading and that Bitcoin may experience a dip before breaking through significant resistance levels. The next major hurdle is seen around $91,000, and until this level is surpassed, short-term price corrections may still occur.

The convergence of weakening fiat currencies, rising institutional support, and Treasury buybacks creates a potentially favorable environment for Bitcoin’s price to continue its upward trajectory toward $100,000 and beyond.