Bitcoin Santa Claus Rally: Will $125K Be the Next Milestone?
Amid rumors that it would become the US reserve asset, the price of bitcoin surged about 5% on December 15 to reach a new all-time high above $106,000. According to TradingView statistics, Bitcoin peaked at $106,554 but has since declined.
According to ZK Square’s chief investment officer, CK Zheng, Bitcoin has probably entered Santa Claus mode, as many investors are looking to increase their capital allocation into asset classes out of fear of losing out. He projected that the price of Bitcoin would reach $125,000 in early 2025 but cautioned that most of the bullish news from the incoming Trump government has already been priced in and that a 30% correction would ensue. In this case, Bitcoin would retrace to about $87,500 after a 30% correction from $125,000.
Bitcoin Price Surges Amid Trump Reserve Asset Rumors and New Accounting Rules
Jack Mallers, the founder and CEO of Strike, stated that on his first day in office on January 20, US President-Elect Donald Trump might issue an executive order recognizing Bitcoin as a reserve asset.
There’s potential to use a day-one executive order to purchase Bitcoin. It wouldn’t be the size and scale of 1 million coins but it would be a significant position.
Mallers
The Financial Accounting Standards Board’s new regulations, which allow institutions to more accurately record the value of their cryptocurrency assets, may have been another factor in the spike in Bitcoin’s price. The regulation will be in effect for fiscal years that start after December 15. Additionally, according to the Crypto Fear and Greed Index, the market sentiment for Bitcoin is currently in the extreme greed zone, scoring 83 out of 100. This shows the impact of the increase in Bitcoin on the market.
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