Bitcoin’s price is soaring to new heights, hitting an all-time high of over $106,000 on December 15, a near 5% rally spurred by talks of it becoming a United States reserve asset. Some call this Bitcoin’s ‘Santa Claus mode’ – a term coined by CK Zheng, Chief Investment Officer of ZK Square. The tag points towards a frenzy among investors fearing they would miss out on the crypto action, hence prompting them to invest more in Bitcoin.
There are speculations around a potential executive order being issued by President-elect Donald Trump as soon as he takes office, signalling Bitcoin as a reserve asset. Strike founder and CEO Jack Mallers prognoses this, adding that the executive order, if it comes, might not be for a massive investment but will hold a considerable position nonetheless.
This news coincides with talks around a third Bitcoin reserve bill brewing at the state level, as mentioned by Satoshi Action Fund CEO Dennis Porter. If it materialises, it would follow the track of Texas and Pennsylvania. Meanwhile, financial analysts predict a possible 0.25% interest rate cut by the US Federal Reserve on December 18, a move that could give Bitcoin prices another boost.
Another fuel to Bitcoin’s price surge could be the revised regulations by the Financial Accounting Standards Board. The new rules would allow institutions to record the value of their crypto assets more realistically, effective for fiscal years post December 15.
Finally, Bitcoin’s market sentiment is currently slotted in the ‘Extreme Greed’ zone, scoring 83 out of 100 on the Crypto Fear and Greed Index. Such a score hasn’t been witnessed since December 5, the day Bitcoin surpassed the $100,000 milestone.