Microsoft AI Bitcoin Forecast Signals a Slow Bullish Rally

Microsoft AI Bitcoin Forecast Signals a Slow Bullish Rally

Microsoft Copilot’s latest analysis predicts a slow bullish rally for Bitcoin. The AI ​​tool predicts that a continued imbalance between supply and demand could push the asset’s price from its current $63,800 range to $170,000 to $200,000 by the end of 2026. The analysis is based on liquidity inflows from cash ETFs and the strategic adoption of Bitcoin by corporate treasuries.

Currently, about 450 new Bitcoins are being created daily, while demand is estimated to be several times that amount. Copilot expects assets under management in Bitcoin ETFs to exceed $100 billion and corporate holdings to exceed 500,000. This institutional accumulation is causing a large portion of coins to be removed from the trading circuit, which, along with the reduction in supply due to the halving, will create strong upward pressure.

In addition to domestic pressures in the cryptocurrency market, regulatory transparency in the US, EU and Asia, along with falling interest rates and fiat currency volatility, are acting as macroeconomic drivers. However, Microsoft’s AI warns that continued inflation and contractionary monetary policies could limit the price ceiling to $90,000-$100,000. The base case of the model focuses on a price of $120,000-$150,000. From a technical perspective, the market is currently in a range-bound position, with the Relative Strength Index (RSI) at 48.14, indicating a relative balance between buyers and sellers. While Bitcoin price has important supports at $63,000 and $60,000, a break above the $68,000 resistance could be the first sign of the beginning of a supply shock and a move towards higher targets.