Crypto analysts are talking about a spectacular Bitcoin rally from January 2025. The latter would be fueled by economic factors as well as massive liquidity flows. All the details in the paragraphs that follow!
Bitcoin powered by Binance stablecoin reserves
In recent days, the stablecoin reserves on Binance reached historic highs. The data shows nearly $45 billion at the end of December. Often used to purchase digital assets like Bitcoin, these funds signal massive buying potential.
According to CryptoQuantthe increase in these reserves often coincides with significant increases in the Bitcoin price as observed on December 11, 2024. On that day, the BTC price increased by 4.7% in one day.
Stablecoins serve as a bridge between fiat currency and cryptocurrencies. Their influx into exchanges indicates an increase in buying pressure. This is a key factor in supporting a rally towards $120,000. However, BTC will need to overcome major resistance around $95,000 and $96,400 before continuing its rise.
Bitcoin at $120,000: What are the economic and political catalysts?
The inauguration of US President Donald Trump, scheduled for January 20, 2025, could play a crucial role in the upcoming Bitcoin rally. This event indeed fuels renewed optimism on the markets. Added to this is the January effect, which is often synonymous with increased investments.
Ryan Lee, analyst at Biget Research, even anticipates a local peak above $120,000 followed by a correction due to profit taking. According to him, investors should monitor:
- FTX reimbursements expected in early January,
- the impact of spot Bitcoin ETFs on the markets.
Bitcoin therefore seems to be at the dawn of a decisive period, where investor optimism intertwines with market realities. Time will tell whether the predictions of crypto experts are correct or not.
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