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Bitcoin Sets New Record, Traders Eye $120,000 Level
Bitcoin (BTC) has set a fresh record, surpassing $106,000 earlier this Monday, with traders now targeting the $120,000 level as the asset moves into the second half of a seasonally bullish December.
Catalysts Supporting Growth
Recent catalysts that have supported growth in BTC include increased speculation of U.S. president-elect Donald Trump creating a federal bitcoin reserve, and crypto companies such as Riot Platforms and MicroStrategy purchasing billions worth of the asset in past weeks.
Optimism in U.S. Policies
Optimism in U.S. policies are driving bitcoin ETFs inflows higher, contributing to increased prices, some point out.
Industry Insights
“TradFi inflows now dominate all sentiment and price action in BTC unlike any other prior crypto cycle before,” shared Augustine Fan, head of insights at SOFA, in a Telegram message to CoinDesk. “This influence will only grow as more and more traditional firms finally need to have a digital asset policy given the immense revenue opportunities and sea-change in the political environment.”
Price Action and Seasonality
Recent price action has shown bitcoin forming higher lows, indicative of a sustained uptrend. The formation of a bull flag or a bullish continuation pattern after recent highs could signal further upward movement.
Seasonal Trends
This month tends to be historically bullish for bitcoin in a move that’s colloquially termed the “Santa Claus Rally.” Data from the past eight years shows that bitcoin ended December in the green six times since 2015, running at least 8% to as much as 46% (in the outlier year of 2020).
Traders’ Expectations
Some traders are now targeting the $120,000 level and above for BTC in the coming year.
Expert Insights
“We think bitcoin still has tremendous upside potential and could easily hit the $125k mark by the end of 2025,” Jeff Mei, COO at crypto exchange BTSE, said over Telegram. “While some say the upside has already been priced in over the last month or so, we think the rally is just getting started.”
“This is because it takes time for institutions, family offices, and high-net-worth individuals to warm up to the idea of allocating 1%-3% of their portfolios to bitcoin and crypto as a whole. Once that happens, crypto inflows could skyrocket. And given Trump’s pro-crypto appointments, continued rate cuts, and stimulus spending from China, there are a lot of reasons to be bullish,” Mei added.
## Conclusion
As bitcoin continues to break new records, traders are expecting further upward momentum. With the seasonally bullish December underway, it’s likely that bitcoin will continue to attract attention and investment from institutions, family offices, and high-net-worth individuals.
## FAQs
* What are the current market trends in the bitcoin market?
+ The current market trend is bullish, with prices reaching new highs.
* What are the key drivers of the current price action?
+ Key drivers include increased speculation of U.S. president-elect Donald Trump creating a federal bitcoin reserve, and crypto companies such as Riot Platforms and MicroStrategy purchasing billions worth of the asset in past weeks.
* What are the seasonality trends in the bitcoin market?
+ December tends to be historically bullish for bitcoin, with the “Santa Claus Rally” seeing prices rise by at least 8% to as much as 46% in some years.
* What are the expectations for the price of bitcoin in the coming year?
+ Some traders are targeting the $120,000 level and above, with one expert predicting a potential price of $125,000 by the end of 2025.
