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Bitcoin is set to moon to $120,000 in January 2025 as $45 billion in stablecoins flood onto Binance.
After a 10% correction from the December 17 high of $108,300, Bitcoin is ready to break out again with the US presidential inauguration and the January effect on the horizon.
Key Drivers of Bitcoin’s January Surge
Several things are lining up for a Bitcoin surge in January. First, the presidential inauguration on January 20 could be a catalyst for risk assets like Bitcoin to get some love. Ryan Lee, Chief Analyst at Biget Research, thinks Bitcoin will hit $120,000 in January and then correct due to profit taking.
Another factor to watch is the global liquidity index, with some thinking a local top around $110,000 to $120,000 before the market corrects. Investors should also keep an eye on the US stock market and the January 3 FTX repayment deadline as these could impact Bitcoin’s price.
Binance’s Stablecoin Reserves Fuel Bitcoin’s Rally
A key ingredient for Bitcoin’s surge is the massive amount of stablecoins on Binance. As of December 31, Binance’s stablecoin reserves hit $44.5 billion, just shy of the all-time high of $45.8 billion. This means there’s a lot of buying power ready to be unleashed and could push Bitcoin higher. Historically, increases in stablecoin inflows to exchanges have been a sign of increasing demand and could put a lot of upward pressure on Bitcoin’s price.
