The bitcoin price is holding steady around $111,000 after a turbulent few weeks, but TD Cowen analysts expect the bitcoin price to reach $141,000 in December.
In a note released on Monday, the firm highlighted the recent crypto market crash and recovery as a testament to the resilience of the broader crypto and bitcoin ecosystem.
The flash crash earlier this month triggered about $19 billion in liquidations, the largest single-day event in crypto history. Despite the scale of the selloff, TD Cowen noted that most exchanges remained operational with minimal disruption, demonstrating the market’s ability to absorb shocks, according to The block reporting.
The decline was initially spurred by US President Donald Trump’s confirmation of a 100% tariff on imports from China, sending the overall crypto market down more than 10%.
While less reputable tokens suffered heavy losses, major digital assets like Bitcoin fared well – Bitcoin briefly fell 15% before closing down just 8% on the day.
“Despite the largest one-day liquidation on record, with open interest halved across venues, most crypto exchanges operated with little or no downtime,” the note read.
Global adoption of Bitcoin
TD Cowen analysts attribute the episode not only to market resilience, but also to growing global adoption. In Japan, for example, the number of registered digital asset accounts has quadrupled over the past five years, reaching more than 7.9 million.
That surge in adoption has prompted Japan’s Financial Services Agency to reconsider its longstanding restrictions on banks investing in digital assets such as Bitcoin.
Bitcoin price rebounded to around $111,000 today after falling to the $104,000 range last week as renewed corporate rallying and optimism over a potential end to the US government shutdown lifted market sentiment.
Bitcoin closed September around its current range, but before the flash crash it hit all-time highs in early October.
Bitcoin price in a gridlock
According to analysts, key resistance for bitcoin now lies at $112K, $115.5K and $117.6K, with a convincing break above $122K needed to shift the bias back to bulls, while support below $105K could fail, with stronger levels at $98K-$96K.
The coming week could see a modest bounce, but failure to hold above $106.9K could open the door to sub-$100K prices, especially if the FOMC does not deliver a significant rate cut.