Bitcoin In 2025 : Why Does This Rally Towards $120,000 Seem Inevitable ?

Crypto analysts are discussing a spectacular Bitcoin rally starting in January 2025. This would be fueled by economic factors as well as massive liquidity flows. All details in the following paragraphs!

Bitcoin fueled by Binance’s stablecoin reserves

In recent days, the stablecoin reserves at Binance have reached historic highs. Data indicates nearly $45 billion at the end of December. Often used to purchase digital assets like Bitcoin, these funds signal a potential for massive buying.

According to CryptoQuant, the increase in these reserves often coincides with significant price hikes in Bitcoin, as observed on December 11, 2024. On that day, the BTC price increased by 4.7% in one day.

Stablecoins serve as a bridge between fiat currency and cryptocurrencies. Their influx into exchanges indicates an increase in buying pressure. This is a key factor in supporting a rally towards $120,000. However, BTC will need to break through major resistances around $95,000 and $96,400 before continuing its ascent.