Bitcoin in 'Santa Claus mode' as anticipation builds for US reserve recognition.
Bitcoin surged nearly 5% in a day, hitting a new all-time high of $106,554 on Dec. 15, before settling around $106,000, fueled by growing speculation that it could become a United States reserve asset.
Bitcoin surged nearly 5% in a day, hitting a new all-time high of $106,554 on Dec. 15, before settling around $106,000, fueled by growing speculation that it could become a United States reserve asset. The rally broke its previous record of $104,000 set on Dec. 5, according to TradingView data.
The surge coincides with expectations of a December interest rate cut by the Federal Reserve, alongside speculation that President-elect Donald Trump might designate Bitcoin as a reserve asset via an executive order on his first day in office, Jan. 20. Jack Mallers, founder and CEO of Strike, hinted at such a possibility, stating, “It wouldn’t involve acquiring 1 million coins, but it would be a significant position.”
CK Zheng, Chief Investment Officer at ZK Square, described Bitcoin’s recent movement as entering “Santa Claus mode,” driven by fear of missing out (FOMO) among investors allocating more capital into the asset. He predicts Bitcoin could reach $125,000 in early 2025 but warns of a potential 30% correction to around $87,500 as much of the bullish sentiment tied to the incoming administration might already be priced in.
Further bolstering Bitcoin’s momentum is a new Financial Accounting Standards Board rule effective Dec. 15, allowing institutions to more accurately reflect the value of their cryptocurrency holdings. Analysts also forecast a 0.25% rate cut from the Federal Reserve on Dec. 18, which could fuel additional price gains in the coming months.
On the legislative front, Dennis Porter, CEO of the Satoshi Action Fund, revealed that a third state-level Bitcoin reserve bill is being drafted, following Pennsylvania and Texas. He expects at least 10 states to propose similar bills, highlighting the growing trend toward Bitcoin’s adoption as a reserve asset.
Meanwhile, market sentiment remains in the “Extreme Greed” zone, with a Crypto Fear and Greed Index score of 83—the highest since Dec. 5, when Bitcoin first surpassed $100,000.
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