●Bitcoin goes ’Santa Claus mode’ as hopes raise for US reserve status
●Bitcoin surged nearly 5% on Dec. 15, hitting an all-time high of $106,554 before stabilizing around $106,000, according to TradingView. This rally follows increasing speculation about Bitcoin becoming a U.S. reserve asset. Its previous record of $104,000 was set on Dec. 5.
●CK Zheng, CIO of ZK Square, attributes Bitcoin’s rally to investors fearing they’ll miss out, dubbing it “Santa Claus mode.” He predicts Bitcoin could hit $125,000 by early 2025 but warns of a potential 30% correction to around $87,500, as much of the optimism tied to the incoming Trump administration is already factored into the price.
●Strike CEO Jack Mallers suggested President-Elect Trump might issue an executive order designating Bitcoin as a reserve asset on Jan. 20, potentially acquiring a “significant position.” Meanwhile, Dennis Porter, CEO of Satoshi Action Fund, revealed that a third Bitcoin reserve bill is in development at the state level, following initiatives by Texas and Pennsylvania. Porter anticipates at least 10 states will introduce similar bills.
●Analysts expect a 0.25% rate cut from the Federal Reserve on Dec. 18, which could further boost Bitcoin’s price. Another contributing factor is a new Financial Accounting Standards Board rule allowing institutions to value crypto assets more realistically, effective for fiscal years starting after Dec. 15.
●Bitcoin’s sentiment index sits at 83/100 (“Extreme Greed”), its highest since Dec. 5, when Bitcoin surpassed $100,000.