Bitcoin surges to new record high above $106,000 as investors predict $120,000 by year-end
Nickie Louise
Posted On December 16, 2024
Bitcoin has hit a new all-time high, continuing a rally that has seen its value climb over 50% since the U.S. presidential election on November 5.
On Sunday, the world’s most popular cryptocurrency briefly surpassed $106,000 before pulling back as investors awaited this week’s Federal Reserve decision on interest rates. By Monday morning, Bitcoin lost some of its gains and settled around $105,000 during trading in Asia.
As of early Monday, Bitcoin was trading slightly higher, up less than 1% at $103,804.71, according to Coin Metrics. It reached $106,509 on Sunday evening, marking its latest record. Bitcoin is currently trading at $103,920.10 as of the time of writing.
Meanwhile, Ether also edged up less than 1%, staying just below the $4,000 threshold. The broader crypto market, tracked by the CoinDesk 20 index, hovered near the flat line after Sunday’s gains of up to 4%. The price of Bitcoin has surged by 135% so far this year.
Bitcoin as a Strategic Reserve Currency
The Trump administration’s stance on cryptocurrencies is seen as more favorable compared to the outgoing Biden administration. President-elect Donald Trump has floated the idea of creating a national reserve of digital assets, akin to the country’s strategic oil stockpile.
In a statement, Peter McGuire of XM.com told the BBC, “The Bitcoin rally since the election has been parabolic, and the fear of missing out (FOMO) is fueling momentum. Many believe $120,000 is possible by year-end, with predictions of over $150,000 by mid-2025.”
“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor,” Gensler wrote on X.
As we reported early this month, President-elect Trump also appointed David Sacks, a former PayPal executive and close associate of Elon Musk, as his cryptocurrency and artificial intelligence czar.
Federal Reserve Expectations
Investors are keeping a close eye on the Federal Reserve’s upcoming meeting, where a rate cut is widely anticipated. The CME FedWatch Tool shows a 96% probability of a 25-basis-point reduction. Lower rates could benefit Bitcoin, which often moves in tandem with tech stocks and tends to perform well in a low-interest environment.
Additionally, lower rates generally weaken the dollar and increase the money supply, both of which have historically correlated with Bitcoin’s price growth.
Bitcoin has now gained nearly 8% this month, over 50% since the election, and a staggering 145% for the year. The optimism around a more crypto-friendly regulatory environment and discussions about a national Bitcoin reserve under the Trump administration continue to fuel interest in the digital asset.
