Bitcoin’s price remained stable over the past 24 hours, settling near $111,500 even as gold and silver surged to new record highs. While this divergence has frustrated some investors, market analysts see Bitcoin’s stability as a sign of underlying strength and are predicting an imminent rally.

In the same period, the broader altcoin market saw minor pullbacks. Ether and XRP each declined by 3%, while Solana and Dogecoin posted losses of around 2%.

Expert Confidence Amid Market Divergence

Despite Bitcoin’s relative quiet, industry experts believe it’s poised to follow the gains in precious metals. At the Digital Asset Summit in London, Quinn Thompson, chief investment officer at Lekker Capital, stated that a Bitcoin rally is imminent. He anticipates a significant price move that will mirror the powerful crypto market surges seen in October 2023 and November 2024.

Matt Mena, a crypto research analyst at 21Shares, echoed this positive sentiment. He argued that Bitcoin’s resilience in the face of global uncertainty demonstrates strong structural demand. Citing sustained inflows into Exchange-Traded Funds (ETFs) and a favorable monetary policy from the Federal Reserve, Mena projects that Bitcoin could climb to $150,000 before the end of 2025.

Federal Reserve Policy Sets the Stage

The macroeconomic outlook appears to be aligning in favor of assets like Bitcoin. The Federal Reserve’s latest Beige Book, a summary of economic conditions, highlighted growing weakness in the U.S. labor market. This report, along with recent acknowledgments of labor market “softness” by Fed Chair Jerome Powell, has solidified market expectations for continued interest rate cuts through the end of the year.

While Powell didn’t provide specific guidance on future rate decisions, his comments have reinforced the belief that further monetary easing is likely, creating a more favorable environment for risk assets.

Crypto-Specific Catalysts Emerge

Beyond the macroeconomic landscape, several crypto-specific developments are fueling market optimism. A notable event was a $1.3 billion Bitcoin transfer from a wallet linked to the LuBian mining pool, which had been inactive for three years. The U.S. Department of Justice later revealed a related $15 billion crypto seizure in a case targeting Cambodia’s Prince Holding Group for alleged money laundering.

In Washington, U.S. Representative Troy Downing has proposed legislation that would permanently allow cryptocurrency investments within 401(k) retirement accounts. This bill aims to solidify access to digital assets for plans managing over $9.3 trillion. Even a small allocation from this massive pool of capital could channel billions of new dollars into the crypto market.

A Promising Technical Outlook

From a technical standpoint, Bitcoin is showing signs of building a strong foundation. The price has formed a triple-bottom pattern near the $109,600 level, a setup that has preceded multiple price reversals since late September. The Relative Strength Index (RSI) is also curving upward from oversold levels, suggesting that buying momentum could be returning.

Traders are closely watching the $114,600 resistance level. A decisive close above this mark would validate the bullish pattern and could accelerate buying pressure, potentially opening the door to targets at $125,000 and $130,000.