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Bitcoin hits $106,000 as hopes rise for US reserve status

Bitcoin hits $106,000 as hopes rise for US reserve status

GrafaGrafa2024/12/16 09:10
By:Isaac Francis

Bitcoin's (CRYPTO:BTC) price surged nearly 5% on December 15, reaching a new all-time high of over $106,000 amid growing speculation about its potential designation as a United States reserve asset. 

The cryptocurrency peaked at $106,554 before settling slightly lower at $106,000. 

This marks a significant increase from its previous high of $104,000 set on December 5.

CK Zheng, chief investment officer of ZK Square, noted that Bitcoin may have entered what he describes as "Santa Claus mode," as investors rush to allocate more capital into the asset class.

He predicts that Bitcoin could reach $125,000 by early 2025 but cautions that a correction of around 30% could follow, bringing the price down to approximately $87,500.

The surge in Bitcoin's price coincides with comments from Jack Mallers, founder and CEO of Strike, who suggested that President-Elect Donald Trump might issue an executive order on his first day in office to designate Bitcoin as a reserve asset. 

“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers stated, adding that while the purchase would not be for one million coins, it would still represent a "significant position."

Additionally, Dennis Porter, CEO of the Satoshi Action Fund, indicated that another state is preparing to introduce a Bitcoin reserve bill following similar efforts in Texas and Pennsylvania. 

He expressed confidence that at least ten states will eventually propose such legislation.

Financial analysts are also anticipating a 0.25% interest rate cut from the US Federal Reserve on December 18, which could further boost Bitcoin's price in the coming months.

Another factor contributing to the price increase is a new rule from the Financial Accounting Standards Board that allows institutions to record the value of their crypto assets more accurately.

Currently, market sentiment for Bitcoin is categorized as “Extreme Greed,” with a score of 83 out of 100 on the Crypto Fear and Greed Index. 

This sentiment has not been higher since Bitcoin broke through the $100,000 milestone earlier this month.

At the time of reporting, the Bitcoin price was $104,553.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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