FameEX Hot Topics | Bitcoin Enters 'Santa Claus Mode' as Optimism Grows for US Reserve Currency Status

Bitcoin soared nearly 5% on Dec. 15, setting a new all-time high above $106,000 amidst speculation about its potential designation as a United States reserve asset. TradingView data shows Bitcoin peaked at $106,554 before stabilizing around $105,000, surpassing its previous record of $104,000 set on Dec. 5.

CK Zheng, Chief Investment Officer at ZK Square, described the rally as Bitcoin entering “Santa Claus mode,” driven by investor FOMO (fear of missing out) and increased capital allocation into the asset. Zheng predicts Bitcoin could reach $125,000 by early 2025 but warned of a potential 30% correction, which would bring its price down to approximately $87,500. He added that much of the bullish momentum linked to the incoming Trump administration has likely been “priced in.”

Speculation has further intensified following comments from Strike CEO Jack Mallers, who suggested that President-elect Donald Trump might issue an executive order designating Bitcoin as a reserve asset on his first day in office, Jan. 20. Mallers noted that while such a move might not involve the purchase of 1 million coins, it could still represent a significant position capable of influencing the market.

On a state level, Satoshi Action Fund CEO Dennis Porter revealed plans for a third Bitcoin reserve bill, following similar efforts in Texas and Pennsylvania. Porter hinted that at least 10 states could adopt similar legislation, promoting Bitcoin as a reserve asset. “Another state has come on board, and they sent me the draft, so I know it’s real,” Porter disclosed during a Dec. 15 X Spaces discussion.

Additionally, financial analysts anticipate a 0.25% interest rate cut by the U.S. Federal Reserve on Dec. 18, which could further boost Bitcoin’s price. Another potential catalyst is a new rule from the Financial Accounting Standards Board (FASB), effective for fiscal years beginning after Dec. 15, allowing institutions to more accurately record cryptocurrency values. This regulatory change is expected to enhance institutional confidence and accelerate Bitcoin adoption in the coming months.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.