Donald Trump

Bitcoin

Reserve

Bitcoin rallied nearly 5% on Dec. 15, reaching a new all-time high of $106,554, fueled by speculation that it may become a U.S. reserve asset.
Data from TradingView shows Bitcoin surpassed its previous high of $104,000, set on Dec. 5, before retracing slightly.
CK Zheng, chief investment officer of ZK Square, attributed the surge to a “Santa Claus mode,” as investors fear missing out and increase their capital allocation to Bitcoin.
Zheng predicted Bitcoin could hit $125,000 by early 2025 but cautioned about a potential 30% correction as much of the bullish sentiment tied to the incoming Trump administration has already been “priced in.”
Such a correction from $125,000 would bring Bitcoin down to approximately $87,500.
Trump Administration Speculation Fuels Rally
The rally follows comments from Strike CEO Jack Mallers, who suggested President-Elect Donald Trump might issue an executive order on Jan. 20, designating Bitcoin as a reserve asset.
“There’s potential to use a day-one executive order to purchase Bitcoin,” Mallers said, though he clarified, “It wouldn’t be the size and scale of 1 million coins, but it would be a significant position.”
Meanwhile, Dennis Porter, CEO of the Satoshi Action Fund, revealed that a third Bitcoin reserve bill is in progress at the state level, joining similar measures in Texas and Pennsylvania.
“We’re going to see more and more of these bills come. At least 10, in my opinion,” Porter said during a Dec. 15 X Spaces discussion.
Additional Catalysts for Bitcoin’s Surge
Financial analysts are also anticipating a 0.25% interest rate cut by the U.S. Federal Reserve on Dec. 18, which could further boost Bitcoin.
Additionally, a new Financial Accounting Standards Board rule taking effect after Dec. 15 allows institutions to more accurately report the value of their crypto assets, potentially attracting more institutional investors.
The Crypto Fear and Greed Index currently ranks market sentiment in the “Extreme Greed” zone at 83 out of 100.

Bitcoin Hits New High Amid Reserve Asset Speculation, Bullish Sentiment Builds

Crypto Intelligence

Other articles published on Dec 16, 2024

Apu Apustaja and Mental Health America Forge Ground-breaking Partnership to Champion Mental Well-...

ECB announces it will continue cutting rates until further notice

Ripple Stock Now Valued at $114.51 Per Share. Here’s the Significance

BlockDAG Unveils New Bonus: 150% on First Purchases; Aptos Surge & Bittensor Growth Grab Market A...

DMM Bitcoin to Liquidate After $320M Hack

In RWA, Can Clearpool Be Bigger Than Mantra OM?

Join our free newsletter for daily crypto updates!