Bitcoin analysts are projecting that the price of Bitcoin (BTC) could skyrocket to $135,000 within the next 100 days. This bold prediction comes as Bitcoin shows strong bullish signals across various market and on-chain indicators. Three main factors are fueling this optimistic outlook: low market volatility, growing stablecoin liquidity, and a negative BTC funding rate that could trigger a short squeeze.
Low Volatility Signals Bullish Bitcoin Trends
Bitcoin’s price is showing signs of strong growth, and much of this optimism is tied to the market’s decreasing volatility. Timothy Peterson, a Bitcoin network economist, has shared a model that links Bitcoin’s price to the CBOE Volatility Index (VIX), a measure of market uncertainty. Peterson’s model suggests that when the VIX is below 18, investors adopt a “risk-on” sentiment. In this scenario, money flows into more speculative assets like Bitcoin.
Over the past 50 trading days, the VIX has dropped from 55 to 25, signaling a decrease in market uncertainty. As the VIX continues to trend downward, Bitcoin’s price could rise as investors move more capital into the crypto market. Peterson’s model, which boasts a 95% accuracy rate, predicts that if this trend continues, Bitcoin could reach $135,000 within the next 100 days.
Bitcoin: A Store of Value and a Speculative Asset
Bitcoin’s price behavior is not entirely predictable, as it can act both as a store of value and as a speculative asset. Jurrien Timmer, Director of Global Macro at Fidelity, highlighted Bitcoin’s dual role. Timmer refers to Bitcoin as having “Dr. Jekyll and Mr. Hyde” characteristics. Depending on the macroeconomic conditions, Bitcoin can serve as a safe haven or be a highly speculative investment.
Timmer pointed out that Bitcoin often rises during periods of expansion in the M2 money supply (which refers to the total money supply) and when stock markets are growing. In these times, Bitcoin acts as an inflation hedge, similar to gold. However, during times of market corrections or liquidity contraction, Bitcoin can become less stable, and its price behavior can be more unpredictable than assets like gold.
Stablecoin Liquidity Reaches Record Highs
The stablecoin market has hit an all-time high, reaching a total market capitalization of $220 billion, according to data from CryptoQuant. Stablecoins are cryptocurrencies that are typically pegged to a stable asset, like the U.S. dollar. They play a crucial role in the crypto market as they provide liquidity for investors and traders.
An increase in stablecoin liquidity is often seen as a bullish signal for Bitcoin and the broader crypto ecosystem. Stablecoins act as “dry powder” that traders and institutions can deploy into higher-risk assets like Bitcoin. As stablecoin supply rises, it signals that more capital is likely to flow into crypto markets, supporting the price of Bitcoin.
Negative Funding Rate Could Trigger Short Squeeze
In a noteworthy development, Bitcoin’s perpetual futures funding rates have turned negative. This means that more traders are betting against Bitcoin’s price, hoping that it will drop. When funding rates are negative, it indicates that short positions dominate the market, and more traders are betting that Bitcoin’s price will decline.
However, this situation creates a potential opportunity for a short squeeze. A short squeeze occurs when rising prices force traders who have bet against the asset (those in short positions) to buy back into the market to cover their losses. This can cause the price to rise even further, as more buying pressure is added.
Bitcoin’s funding rate has reached its lowest point in 2025, creating conditions for a potential short squeeze. Over $3 billion in short positions are at risk of liquidation, meaning that if Bitcoin’s price continues to rise, it could trigger a significant buying spree. This could push Bitcoin’s price well above $100,000 in the near future, with some analysts predicting that $135,000 is within reach.
The Path to Bitcoin’s Next All-Time High
Bitcoin’s price movements in the coming months will depend on several factors, including macroeconomic trends, liquidity, and investor sentiment. Analysts believe that with a declining VIX, rising stablecoin liquidity, and a negative funding rate creating the potential for a short squeeze, Bitcoin’s next all-time high is not only possible, but likely within the next 100 days.
If the VIX continues to stay below 18 and the short squeeze materializes, Bitcoin could break through its previous all-time high of nearly $69,000 and surge to $135,000. This would mark Bitcoin’s most significant rally since its peak in late 2021.
What Does This Mean for Bitcoin Investors?
For Bitcoin investors, the current market conditions present a unique opportunity. If the predictions hold true, those who have invested in Bitcoin could see significant returns in the coming months. The combination of low volatility, increasing liquidity, and a potential short squeeze could lead to one of the most exciting periods in Bitcoin’s history.
As always, investors should proceed with caution. While the outlook for Bitcoin is optimistic, the crypto market can be volatile, and prices can change quickly. However, for those who believe in the long-term potential of Bitcoin, this could be a crucial time to capitalize on the current market conditions.
With the stars aligning for Bitcoin’s potential breakout, many analysts are watching closely to see if Bitcoin will reach the $135,000 target within the next 100 days. Should this occur, Bitcoin will once again prove itself as a dominant force in the world of cryptocurrency.
