Bitcoin’s price surged almost 5% on December 15 to reach an all-time high of $106,554 before falling slightly. The rally is fueled by speculation that Bitcoin may become a US reserve asset under the new Trump administration.
Several experts are predicting a significant increase in Bitcoin’s value, with some forecasting it could reach $125,000 by early 2025. However, others warn of a possible 30% correction due to increased market sentiment and bullish news being priced into the market.
Strike founder and CEO Jack Mallers believes that US President-Elect Donald Trump may issue an executive order designating Bitcoin as a reserve asset on his first day in office. This could result in a significant purchase of Bitcoin, potentially worth millions of coins.
Satoshi Action Fund CEO Dennis Porter also noted that a third Bitcoin reserve bill is in the works at the state level, with at least 10 states expected to introduce similar legislation. This could further support the price rise and create more opportunities for investors.
Additionally, financial analysts are predicting a 0.25% interest rate cut from the US Federal Reserve on December 18, which could lift Bitcoin’s price even further. The recent FASB rule changes allowing institutions to record crypto assets more realistically may also be contributing to the surge.
The Crypto Fear and Greed Index currently shows Bitcoin’s market sentiment as “Extreme Greed” with a score of 83 out of 100, indicating high optimism among investors. However, experts caution that this could lead to a correction in the future.
Source: https://cointelegraph.com/news/bitcoin-sets-new-all-time-high-above-105000