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Bitcoin ($BTC ) is once again attracting the attention of investors, having reached a record high of $108,000 earlier this week. The steady growth of the exchange rate has led to traders and analysts increasingly targeting a new target of $120,000. The current dynamics and favorable historical trends in December reinforce expectations of a further upward trend.
December: the growth season for Bitcoin
December is traditionally considered a good month for bitcoin. Colloquially, this is called the "Santa Claus rally". Over the past eight years, $BTC has ended December in positive territory six times, showing growth from 8% to 46% (the exception was the abnormal year 2020). Analysts attribute this to a seasonal increase in demand caused by the end of the year and holidays.
This year was no exception: by setting a new record, bitcoin is showing a steady uptrend. In recent weeks, a "bull flag" model has formed, which often indicates the possibility of further growth.
The main growth catalysts
Among the factors supporting the current rise of bitcoin, analysts highlight:
Optimism about U.S. policy. President-elect Donald Trump has announced the possible creation of a federal reserve of bitcoins, which increases confidence in cryptocurrencies.
The activity of major players. Companies such as Riot Platforms and MicroStrategy have invested billions of dollars in bitcoin, boosting capital inflows.
The popularity of Bitcoin ETFs. Growing interest in bir
Augustine Fan, an analyst at SOFA, notes that it is the inflow of capital through traditional financial structures (TradFi) that has become a key factor in the growth of the market:
"This impact will only grow as traditional companies increasingly incorporate digital assets into their strategy. The combination of profit opportunities and changes in the political environment makes bitcoin a particularly attractive tool."
Forecasts for the future
The optimism of traders and investors continues to grow. Some experts expect bitcoin to reach the $120,000 mark next year. Longer-term forecasts also look impressive. Jeff May, Chief Operating Officer of the BTSE cryptocurrency exchange, is confident that BTC will continue to grow:
"We believe #bitcoin could easily reach $125,000 by the end of 2025. Although some of the recent growth has already been factored into the current price, we are confident
May attributes her expectations to the growing confidence in #bitcoin among institutional investors, family offices and individuals with large capital.
"Investors need time to accept the idea of allocating 1-3% of portfolios to bitcoin. When this happens, we will see a sharp influx of capital into cryptocurrencies."
Looking ahead
Against the background of favorable seasonality and positive fundamental factors, bitcoin continues to show impressive dynamics. The December rally once again confirms the status of BTC as one of the most promising investment instruments of our time. Investors are optimistic about 2024, expecting new records and an expansion of the influence of digital assets on the global financial market.
