After Donald Trump won the U.S. presidential election, the price of Bitcoin surged by 37.3% in November. Historical data shows that the price of Bitcoin may continue to rise by 46% in December. Although Bitcoin is currently hovering around $96,600, this momentum could push it up to $141,000 by the end of the year.
Will the price of Bitcoin rise in December?
After achieving an astonishing 37.3% increase in November, Bitcoin is expected to see a strong year-end performance in December. Blockchain analysis platform Spot On Chain reports that historically, the price of Bitcoin has averaged an increase of 30-46% in December after the election.
As of the time of writing, the price of BTC is $96,922, with a market cap of $1.918 trillion. Therefore, if Bitcoin replicates its previous performance, the $100,000 level seems easily achievable. With the new FOMO-driven market dynamics, their updated model now predicts that if we consider a 30% increase from now, BTC could climb to $115,000 by the end of December. If it rises by 46%, the price momentum for BTC could further extend to $141,000 by the end of December.
Additionally, well-known cryptocurrency analyst Ben Armstrong (also known as BitBoy) believes that the price of Bitcoin could rise to $100,000 within the next 48 hours. BitBoy makes predictions based on the future permanent data of BTC. He pointed out:
"It's time, guys. In the next 48 hours, BTC will hit $100,000. This is the moment we've been waiting for. Cherish it. We only get it once."
The reserves on Bitcoin exchanges have significantly decreased.
According to 10x Research data, the supply of Bitcoin on exchanges may soon be depleted. Unlike the substantial influx at the end of summer that temporarily increased exchange inventories, current on-chain data shows a sharp decline in supply. Moreover, long-term holders remain steadfast, choosing not to release Bitcoin into the market. This could provide an additional catalyst for Bitcoin's price.
On the other hand, since its inception, the Bitcoin ETF has witnessed over $31 billion in inflows, capturing a large amount of supply from the market. It has been reported that BlackRock's traditional funds are also seeking investment opportunities in a spot Bitcoin ETF. According to 10x Research, there are currently only three exchanges—Bitfinex, Binance, and Coinbase—that have sufficient BTC inventory. It added:
"Considering that the $30 billion inflow into Bitcoin ETFs can only secure 300,000 BTC at current prices, Bitfinex's reserves can last for about a year, while Binance and Coinbase have sufficient supplies."
Senior Bitcoin analyst Willy Woo also confirmed this, stating: "If you want to understand what is happening, look at the BTC reserves on exchanges, and you will find that a supply shock is inevitable. I don't know who is buying, but short-term traders are selling their tokens to BTC vacuums."