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As the holidays approach, Bitcoin seems to be putting on its Santa Claus costume to deliver a surprise rally to its investors. Rumor has it that elected president Donald Trump may turn BTC into a national reserve asset as soon as he takes office. With a surge to $106,000 on December 15, Bitcoin is establishing itself as the ideal gift under the financial tree. But at what cost will this rise be paid?
Bitcoin: unprecedented highs for the flagship crypto
On December 15, Bitcoin set an all-time record, reaching $106,554 before stabilizing at $106,000. A dizzying rise, fueled by a wave of economic euphoria: a possible 0.25% reduction in interest rates by the U.S. Federal Reserve and speculation on a pro-Bitcoin policy from the upcoming Trump administration.
BREAKING: #BITCOIN HITS $106,000 💥
https://t.co/XwdsvLV62l— Bitcoin Magazine (@BitcoinMagazine) December 16, 2024
CK Zheng, CIO of ZK Square, attributes this frenzy to the famous “Santa Claus mode” of Bitcoin, as investors fear missing out on the cryptocurrency train. But caution is advised, he warns, this rise could hide a 30% correction, bringing Bitcoin to around $87,500 after a projected peak of $125,000 in early 2025.
Also to watch: the increasing adoption of Bitcoin as a reserve asset. After Texas and Pennsylvania, a third state could jump on the moving train. Dennis Porter of the Satoshi Action Fund predicts that at least 10 states will adopt similar laws in the coming months.
Key figures:
- $106,554: record reached on December 15;
- 0.25%: rate cut expected on December 18;
- $125,000: projected price in early 2025 before a possible correction.
BTC Price: the stars align, but caution
The surge in the Bitcoin price is not a matter of chance. The new rule from the Financial Accounting Standards Board, effective after December 15, now allows institutions to better value their crypto assets. An advancement that attracts capital and fuels investor appetite.
Jack Mallers, CEO of Strike, goes further by claiming that Donald Trump could sign an executive order as soon as “day one” to officially recognize Bitcoin as a reserve asset. “It wouldn’t be a purchase of a million coins, but a significant position,” he stated, sending the crypto community into a frenzy.
In such a context, the Crypto Fear and Greed Index shows a score of 83, a level of optimism that has not been reached since the breakthrough of $100,000 in early December. However, this euphoria could well be fleeting if the expected corrections turn out to be as severe as feared.
Moreover, Jamie Coutts calls for caution: a bloody correction could well abruptly halt this festive momentum, plunging Bitcoin into two or three months of turbulence. Stay vigilant before betting everything on this flagship crypto.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
