Bitcoin Sets New All-time High Above $105,000
16 Dec, 2024 ● Crypto News
The price of Bitcoin surged nearly 5% on Dec. 15, reaching a new all-time high of over $106,000 amid growing speculation that it could be designated as a U.S. reserve asset.
TradingView data shows that Bitcoin peaked at $106,554 before experiencing a slight pullback. The previous record was $104,000, set on Dec. 5.
CK Zheng, chief investment officer at ZK Square, told Cointelegraph that Bitcoin appears to have entered “Santa Claus mode,” with many investors allocating more capital to avoid missing out.
Zheng forecasted Bitcoin could hit $125,000 by early 2025 but cautioned that a 30% correction could follow, as much of the optimism tied to the incoming Trump administration has already been factored into the price.
A correction of that size would see Bitcoin drop to around $87,500.
This comes amid comments from Strike founder and CEO Jack Mallers, who suggested that U.S. President-Elect Donald Trump might issue an executive order to declare Bitcoin a reserve asset on his first day in office, Jan. 20.
“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers said, adding:
“It wouldn't be the size and scale of 1 million coins but it would be a significant position."
Satoshi Action Fund CEO Dennis Porter also revealed that a third Bitcoin reserve bill is being drafted at the state level, though he did not specify which state could follow Pennsylvania and Texas.
“We had Pennsylvania, and we had Texas. And now we have another state coming on board. And they sent me the draft. So I know it’s real,” Porter stated in a Dec. 15 X Spaces event.
Porter expects at least 10 states to propose similar Bitcoin reserve bills:
“It’s not going to stop. We’re going to see more and more of these bills come. At least 10, in my opinion.”
Analysts are also anticipating a 0.25% interest rate cut from the U.S. Federal Reserve on Dec. 18, which could further bolster Bitcoin’s price in the coming months.
Another factor fueling Bitcoin’s rally could be the Financial Accounting Standards Board’s new rules, which allow institutions to more accurately report the value of their crypto holdings.
These rules take effect for fiscal years beginning after Dec. 15.
Market sentiment remains strong, with the Crypto Fear and Greed Index showing an “Extreme Greed” score of 83 out of 100.
This is the highest level recorded since Dec. 5, when Bitcoin surpassed the $100,000 milestone.
Sources:
https://cointelegraph.com/news/bitcoin-sets-new-all-time-high-above-105000
https://www.tradingview.com/symbols/BTCUSD/?exchange=COINBASE
