Since Trump won the final victory in the US election earlier this month, the cryptocurrency market has celebrated, with Bitcoin continuing to break through multiple price barriers and hitting a record high of $93,200 on November 14.

Although Bitcoin has fallen slightly in the past two days, the price of the currency still remains around US$91,000 at the time of writing, at US$91,607, an increase of 3.2% in the past 24 hours.

Matrixport: Bitcoin's strong performance will continue until December

Against this background, cryptocurrency financial services platform Matrixport released its weekly report yesterday (15th), stating that Bitcoin’s strong performance is expected to continue until December:

After seven months of consolidation, we have identified several factors driving the Bitcoin price range. Bitcoin spot ETFs have seen extraordinary inflows, starting with the 50 basis point rate cut in mid-September, and Fed Chairman Powell's assurances of an extended rate cut cycle, which further expanded the inflows of spot ETFs.

Bitcoin’s strength is expected to continue into December, driven by rising prices and increased media attention, which will attract new investors. Optimism will also surround Trump’s inauguration on January 20, 2025, which could bring a more favorable regulatory environment for cryptocurrencies, including the appointment of a new SEC chairman.

Additionally, expectations of FTX’s upcoming announcement of a $16.5 billion return to creditors could also support market sentiment. These factors create a favorable backdrop for continued bullish sentiment and Bitcoin price stability.

Three things to watch for in December

Matrixport added that they believe that by 2025, cryptocurrencies will cross the 8% penetration threshold, which will serve as an important turning point and lay the foundation for greater popularization in the future.

In the last month of this year, the US regulatory field will also usher in three important changes:

  • On December 6, S&P Global may include MicroStrategy in the S&P 500 Index, which will promote the entry of index funds;

  • On December 10, Microsoft will consider a proposal to invest in Bitcoin despite opposition from the board of directors;

  • Starting from December 15, the Financial Accounting Standards Board (FASB) will introduce new rules that allow crypto assets to be included in company financial reports at fair market value, which will encourage financial departments to include Bitcoin in their balance sheets.

However, in the end, investors are reminded that when Bitcoin's relative strength index RSI reaches an overbought level, or the 30-day rolling return rate exceeds +40%, the price of the currency may consolidate as the momentum cools, but this does not affect the long-term bullish view of Bitcoin.