Bitcoin (BTC) recently created a new high above $106,000, and traders are now eyeing the $120,000 target as the cryptocurrency enters the typically strong second half of December.
Key Takeaways:
- Increased confidence in U.S. policies has led to rising inflows into bitcoin ETFs, boosting prices.
- December is historically bullish for bitcoin, often associated with the 'Santa Claus Rally.'
Data from the past eight years shows that bitcoin ended December positively six times since 2015, with gains of 8% to 46% in those years.
Recent driving factors behind bitcoin's rise include speculation about U.S. President-elect Donald Trump possibly establishing a federal bitcoin reserve. In addition, companies like Riot Platforms and MicroStrategy have invested billions into bitcoin recently.
Augustine Fan, head of insights at SOFA, noted:
"TradFi inflows now dominate all sentiment and price action in BTC unlike any prior crypto cycle. This influence will only grow as more traditional firms need a digital asset policy due to immense revenue opportunities."
Moreover, bitcoin's current price trends suggest an uptrend, reinforcing the prospects of a potential bullish run ahead. Jeff Mei, COO at BTSE, stated:
"We think bitcoin still has tremendous upside potential and could easily hit the $125k mark by the end of 2025."
Understanding Seasonality:
Market seasonality refers to patterns that influence asset prices at certain times of the year. Traditionally bullish months like November and December often see increased demand as the holiday season approaches, contributing to higher cryptocurrency prices.
As these trends unfold, traders are increasingly aiming for the $120,000 milestone for bitcoin in the coming year.
