Bitcoin reached a new high in the early hours of today (17th), briefly soaring to $107,000. Market optimism is high, full of expectations for the "Christmas rally", and traders are beginning to target a price of $120,000.
Multiple favorable factors are driving Bitcoin up.
The recent key factors supporting Bitcoin's surge, aside from the widespread rumor that U.S. presidential candidate Donald Trump will establish a "federal Bitcoin reserve", include public companies like Riot Platforms and MicroStrategy investing billions of dollars to buy Bitcoin.
At the same time, the market is optimistic about the direction of cryptocurrency policy in the U.S., further driving a massive influx of funds into Bitcoin spot ETFs, propelling Bitcoin prices to soar.
Augustine Fan, research director at SOFA Insights, pointed out: "The influx of traditional financial capital has become a key force driving Bitcoin prices and market sentiment, which is distinctly different from previous cryptocurrency bull markets."
As more traditional financial institutions incorporate digital assets into their portfolios, this trend will only continue to expand, becoming a new driving force in the market.
"Christmas rally" is brewing! The price movement of Bitcoin in December is worth looking forward to.
Technical analysis shows that Bitcoin is currently presenting a pattern of "higher lows", indicating a strong bullish trend, and forming a bullish "flag pattern", which often precedes further upward movement.
Moreover, Bitcoin's market performance in December is also worth looking forward to. From historical data, in the 9 years from 2015 to 2023, Bitcoin rose in December in 5 of those years, with 2020 achieving an astonishing increase of 46.92%, making it the "strongest Christmas gift."
Market experts point out that the "seasonal cycle" of Bitcoin prices may seem coincidental, but there are actually patterns behind it.
For example, during the tax season from April to May, some investors choose to take profits, leading to market corrections; whereas as the year-end Christmas holiday approaches, the influx of funds injects vitality into the market, often driving prices higher.
Next stop, $120,000? BTSE COO: The Bitcoin bull market has just begun.
As the bullish market sentiment continues to heat up, some traders believe that the rise of Bitcoin has just begun, even raising next year's target price to $120,000.
Jeff Mei, the COO of cryptocurrency exchange BTSE, stated directly:
The potential for Bitcoin's rise has not yet hit its ceiling. We expect Bitcoin to reach $125,000 by the end of 2025.
Although some in the market believe that Bitcoin's rise over the past month has fully reflected favorable factors, we believe this wave of increase is merely the prologue, and the real bull market has just begun.
Jeff Mei further points out that institutional investors, family offices, and high-net-worth individuals often need time to adjust to the concept of "allocating 1% to 3% of their investment portfolio to Bitcoin and cryptocurrencies". Once this trend takes shape, the influx of funds into the cryptocurrency market could see exponential growth.
In addition, Jeff Mei mentioned that Trump's cryptocurrency-friendly policies, the global trend of interest rate cuts, and China's economic stimulus measures will all be strong drivers supporting this wave of market activity.
