With Bitcoin (BTC+0.73%) currently trading for less than $70,000, it might seem inconceivable that it could more than double in value to hit a price of $150,000 this year. Yet, that's exactly what some top Wall Street firms are now predicting.
So what are some of the catalysts that could send Bitcoin soaring this year? Let's take a closer look.
Market sentiment
Right now, the Crypto Fear & Greed Index is sitting near all-time lows. It currently reads 13 out of a possible 100, indicating extreme fear.
You can interpret that ultra-low reading in one of two ways. It could be a clear red flag that something is deeply wrong with Bitcoin. Or, if you're an eternal optimist, it could be a sign of total investor capitulation. It can't get any worse than it is right now.
From my perspective, there are a number of factors that could result in a positive shift in market sentiment. Any signal of further interest rate cuts by the Federal Reserve could trigger a new risk-on mentality, leading to an inflow of new money into crypto and Bitcoin. The passage of new pending crypto legislation later this year, too, could help to reverse the tide on market sentiment.
