Bitcoin Could Reach $90,000 by Year-End, 10x Research Says

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Bitcoin could reach $90,000 by year-end as rising government debt, persistent inflation and weakness in bond markets strengthen its appeal as an alternative investment, according to 10x Research founder Markus Thielen.

Thielen outlined the forecast in a Cointelegraph interview, as reported by Benzinga.

His outlook links Bitcoin’s potential recovery to economic pressures that could encourage investors to reconsider traditional fixed-income assets.

The prediction remains conditional rather than a guaranteed price outcome. Thielen suggested that Bitcoin could temporarily retreat into the $70,000 price range before recovering, with a potentially more cautious Federal Reserve providing support.

Government Debt Strengthens Bitcoin Outlook

Thielen argued that expanding government borrowing could weaken the relative attractiveness of bonds, particularly when yields fail to keep pace with debt growth.

“Government debt growing nearly 8% annually makes bonds yielding 4%-5% less attractive, potentially boosting demand for Bitcoin and gold.”

He also pointed to nearly $40 trillion in US government debt and approximately $8 trillion held in money market funds. Thielen considers that pool of capital a potential source of investment demand for alternative assets.

Technical Signals Support Recovery Forecast

Thielen compared Bitcoin’s market structure with early 2023, citing improving weekly relative strength index readings and a pattern of higher price lows as indications of strengthening momentum.

Institutional participation is another factor in his assessment. He estimated that Bitcoin’s volatility has declined towards 30%, compared with historical levels of 60% to 80%.

That change could alter how future rallies develop. Rather than sustained rapid advances, Thielen envisages sharp price adjustments followed by periods of consolidation.

Institutional Liquidity and Cryptocurrency Competition

Thielen also rejected concerns that potential OpenAI and Anthropic public listings would necessarily drain cryptocurrency liquidity. He argued that such listings could instead attract additional capital towards growth-oriented investments.

On competing digital assets, he expects Bitcoin to outperform Ethereum, arguing that growing Layer-2 activity has weakened Ethereum’s fee generation and value capture for token holders.

He contrasted that position with Hyperliquid, highlighting its revenue generation and token buybacks as features that attract investors.