Bitcoin (BTC) set a new record above $106,000 early Monday, and traders are now targeting the $120,000 level as we head into a seasonally bullish second half of December.
Recent catalysts supporting BTC's growth include growing speculation that US President-elect Donald Trump will create a federal Bitcoin reserve, as well as crypto companies such as Riot Platforms and MicroStrategy in recent weeks. The company has purchased assets worth billions of dollars.
Some point out that optimism about U.S. policy has increased inflows to Bitcoin ETFs, contributing to the price rise.
“TradFi inflows, unlike other crypto cycles in the past, are now driving BTC sentiment and price trends,” Augustin Huang, Head of Insights at SOFA, said in a Telegram message to CoinDesk. He controls everything.” “This influence will only grow as more and more traditional companies will eventually need to have digital asset policies, given the huge revenue opportunities and major changes in the political environment.”
Recent price trends show Bitcoin forming further lows, indicating a sustained upward trend. A bullish flag forming after a recent high or a bullish continuation pattern could signal further upside.
This month has historically been bullish for Bitcoin, with what is colloquially referred to as the “Santa Claus Rally.” Data from the past eight years shows that Bitcoin has finished in the green in December six times since 2015, ranging from at least 8% to as much as 46% (2020 being an outlier year).
Seasonality is the tendency for an asset to experience regular and predictable changes that repeat from calendar year to calendar year. Although it may seem random, the possible reasons could be from profit taking around tax season in April and May, which causes drawdowns, to the entirety of November and December, which is a sign of increased demand ahead of the holiday season. There is a wide range of periods, including bullish periods.
Meanwhile, some traders are currently targeting BTC above the $120,000 level next year.
“Bitcoin still has significant upside potential and could easily reach the $125,000 level by the end of 2025,” said Jeff May, chief operating officer of crypto exchange BTSE. He spoke on Telegram. “Some say the upside has already been priced in over the past month or so, but we think the rally is just beginning.”
“This is because it will take time for institutions, family offices and high-net-worth individuals to get used to the idea of allocating 1% to 3% of their portfolios to Bitcoin and cryptocurrencies overall. Inflows could surge. And there are plenty of reasons to be bullish given President Trump's crypto champion appointment, continued interest rate cuts, and stimulus from China,” May added. .
