Originally published on: December 15, 2024
Bitcoin has shown a remarkable rally of almost 5% on December 15, reaching a new all-time high above $106,000. The surge in price has sparked speculation that Bitcoin could potentially become a United States reserve asset. This surge comes at a time when many investors are fearing missing out and looking to increase their capital allocation in the asset class, leading some experts to suggest that Bitcoin has entered “Santa Claus mode.”
CK Zheng, the Chief Investment Officer of ZK Square, predicts a price target of $125,000 for Bitcoin in early 2025. However, he warns of a possible 30% correction following this surge, as much of the bullish news from the incoming Trump administration has already been factored into the current price. A 30% correction from $125,000 could see Bitcoin retrace to around $87,500.
Jack Mallers, the founder and CEO of Strike, has suggested that US President-Elect Donald Trump could issue an executive order designating Bitcoin as a reserve asset on his first day in office on Jan. 20. Additionally, Dennis Porter, the CEO of Satoshi Action Fund, mentioned that a third Bitcoin reserve bill is in the works at the state level, hinting at a growing trend towards recognizing Bitcoin as a legitimate reserve asset.
Financial analysts are also predicting a 0.25% interest rate cut from the US Federal Reserve on Dec. 18, which could further boost Bitcoin’s price in the coming months. Furthermore, a new rule introduced by the Financial Accounting Standards Board allows institutions to more accurately record the value of their crypto assets, potentially contributing to the recent price surge.
The market sentiment for Bitcoin is currently in the “Extreme Greed” zone, indicating high optimism among investors. With Bitcoin breaking through the $100,000 milestone, the cryptocurrency market is buzzing with excitement and anticipation for what the future holds.
Don’t miss out on the latest insights and analysis on market trends. Subscribe to our newsletter to stay informed about investment opportunities, risk mitigation strategies, and trading tips. Join us as we navigate the ever-evolving world of cryptocurrencies and investments.