{"id":1508200,"date":"2024-12-16T16:05:00","date_gmt":"2024-12-16T21:05:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1508200"},"modified":"2024-12-16T16:05:00","modified_gmt":"2024-12-16T21:05:00","slug":"bitcoin-tops-106k-goes-santa-claus-mode-as-optimism-grows-for-us-reserve-status","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/bitcoin-tops-106k-goes-santa-claus-mode-as-optimism-grows-for-us-reserve-status\/1508200\/","title":{"rendered":"Bitcoin Tops $106K, Goes ‘Santa Claus Mode’ As Optimism Grows For US Reserve Status"},"content":{"rendered":"

Bitcoin Tops $106K, Goes ‘Santa Claus Mode’ As Optimism Grows For US Reserve Status<\/span><\/p>\n

\n

Bitcoin\u2019s price rallied almost 5% over the weekend to set a new all-time high above $106,000 amid speculation that it may become a United States reserve asset.<\/strong><\/p>\n

<\/a><\/p>\n

CK Zheng, chief investment officer of ZK Square, told Cointelegraph <\/a>that Bitcoin has likely entered \u201cSanta Claus mode,\u201d as many investors fear missing out and look to allocate more capital into the asset class.<\/strong><\/p>\n

He predicted a Bitcoin price tag of $125,000 in early 2025 but warned a possible 30% correction could follow as most of the bullish news from the incoming Trump administration has been \u201cpriced in.\u201d<\/p>\n

A 30% correction from $125,000 would see Bitcoin retrace to around $87,500.<\/p>\n

<\/a><\/p>\n

\u00a0<\/p>\n

From a liquidity perspective, we should not be surprised that bitcoin continues to charge higher (but the new year may bring some weakness)…<\/p>\n

<\/a><\/p>\n

Bitcoin has also reached a new record relative to gold (1 BTC can now buy 40 oz of gold).<\/strong><\/em><\/p>\n

<\/a><\/p>\n

Gracy Chen, CEO of Bitget, <\/a>writes that while the Santa Claus rally is a well-documented phenomenon in traditional stock markets, its presence in cryptocurrency is less clear. <\/strong><\/p>\n

Cryptocurrencies, known for their volatility and 24\/7 trading, don\u2019t always follow equities\u2019 seasonal patterns. A second trend can be applied to this model that has empirically proven a powerful predictor of a Santa Claus rally occurring in Cryptoland: whether or not the market is in a bull run.<\/em><\/p>\n

It\u2019s safe to say that crypto firmly checks that box right now, thus making a compelling case for a severe rally coming together as the year draws close.<\/strong> In late 2017, for example, BTC rallied by 68% over the two weeks spanning the New Year. Subsequent years have been more muted, in line with the prevailing market mood at the time. But then there\u2019s 2024, which has already broken all crypto records. One wouldn\u2019t bet against it closing out the year on a tear just to complete the clean sweep.<\/em><\/p>\n

If traders buy into the Santa Claus rally thesis, they don\u2019t need to create a prediction market to speculate on the likelihood \u2014 although nothing is stopping them. In crypto, financial freedom comes as a standard. A more intelligent strategy is filling one\u2019s conviction bags before the year-end. Load up on the assets you believe in the most, and then sit back and let the prophecy unfold.<\/strong><\/em><\/p>\n

As 2024 closes out, the financial landscape presents a mix of optimism and caution. The global economy has shown resilience, with many sectors rebounding from previous downturns. Consumer spending during the holiday season is expected to be robust, bolstering market sentiment. The only potential dampener could be the escalation of global tensions in the Middle East or Ukraine. Still, barring a major macro event, there\u2019s every reason to expect the current bull market to remain intact.<\/em><\/p>\n

Even if the Santa Claus rally proves to be a damp squib on this occasion, it\u2019s no biggie: The bags investors have accumulated now are likely to stand them in good stead next year as the crypto market continues to grind higher. They don\u2019t have to leave a glass of milk and some cookies out, but there\u2019s no excuse for not being ready for Santa this Christmas.<\/em><\/p>\n

It comes as Strike founder and CEO Jack Mallers said US President-Elect Donald Trump could potentially\u00a0issue an executive order<\/a>\u00a0designating Bitcoin as a reserve asset on his\u00a0first day in office<\/a>\u00a0on Jan. 20.<\/p>\n

\u201cThere\u2019s potential to use a day-one executive order to purchase Bitcoin,\u201d <\/strong>Mallers stated, adding:<\/em><\/p>\n

\u201cIt wouldn’t be the size and scale of 1 million coins but it would be a significant position.”<\/em><\/p>\n

Meanwhile, Satoshi Action Fund CEO Dennis Porter\u00a0said<\/a>\u00a0a third Bitcoin reserve bill is in the works at the state level,<\/strong> though he didn\u2019t say which state might follow\u00a0Texas and Pennsylvania\u2019s lead.<\/a><\/p>\n

\u201cWe had Pennsylvania, and we had Texas. And now we have another state coming on board. And they sent me the draft. So I know it\u2019s real,\u201d he said during a Dec. 15 X Spaces.<\/em><\/p>\n

Porter added he expects at least 10 states to introduce a Bitcoin reserve bill in total.<\/strong><\/p>\n

“Its not going to stop. We’re going to see more and more of these bills come. At least 10, in my opinion.”<\/em><\/p>\n

Financial analysts are also tipping a 0.25% interest rate cut from the US Federal Reserve on Dec. 18, which could lift Bitcoin\u2019s price even further in the coming months.<\/p>\n

Another catalyst behind Bitcoin\u2019s price surge may be\u00a0one of the new rules\u00a0<\/a>by the Financial Accounting Standards Board, which enables institutions to record the value of their crypto assets more realistically. The rule will apply to fiscal years beginning after Dec. 15.<\/strong><\/p>\n

However, bitcoin\u2019s market sentiment is currently in the \u201cExtreme Greed\u201d zone at a score of 83 out of 100,\u00a0according<\/a>\u00a0to the Crypto Fear and Greed Index.<\/p>\n

<\/a><\/p>\n

Crypto Fear and Greed Index score for Dec. 16. Source: Alternative.me<\/em><\/p>\n

It hasn\u2019t been higher since Dec. 5, when Bitcoin broke through\u00a0the $100,000 milestone.<\/a><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 12\/16\/2024 – 11:05<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/crypto\/bitcoin-tops-106k-goes-santa-claus-mode-optimism-grows-us-reserve-status<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitcoin Tops $106K, Goes ‘Santa Claus Mode’ As Optimism Grows For US Reserve Status Bitcoin\u2019s price rallied almost 5% over the weekend to set a…<\/p>\n","protected":false},"author":0,"featured_media":1508201,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1508200","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1508200","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1508200"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1508200\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1508201"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1508200"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1508200"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1508200"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}