FameEX Hot Topics | Bitcoin Enters 'Santa Claus Mode' Amid Rising Hopes for US Reserve Status

Bitcoin surged nearly 5% on Dec. 15, setting a new all-time high above $106,000, fueled by speculation of its potential designation as a United States reserve asset. TradingView data shows Bitcoin peaked at $106,554 before stabilizing at $105,000. This marks a significant milestone, surpassing its previous high of $104,000 set on Dec. 5.

CK Zheng, Chief Investment Officer of ZK Square, attributed the rally to Bitcoin entering “Santa Claus mode,” driven by investors’ fear of missing out (FOMO) and increased capital allocation into the asset. Zheng projects Bitcoin could reach $125,000 by early 2025 but cautioned about a possible 30% correction, which could bring the price down to around $87,500. He explained that much of the bullish sentiment from the incoming Trump administration has already been “priced in.”

Adding to the speculation, Strike CEO Jack Mallers 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 emphasized the potential for Trump to initiate a substantial Bitcoin purchase, though not on the scale of 1 million coins, but still a significant position that could influence the market.

On the state level, Satoshi Action Fund CEO Dennis Porter revealed that a third Bitcoin reserve bill is being drafted, following the efforts of Texas and Pennsylvania. Porter hinted that at least 10 states could introduce similar legislation to adopt Bitcoin as a reserve asset. “We have another state coming on board, and they sent me the draft, so I know it’s real,” Porter shared during a Dec. 15 X Spaces discussion.

In addition, financial analysts anticipate a 0.25% interest rate cut from the U.S. Federal Reserve on Dec. 18, which could provide further upward momentum for Bitcoin in the months ahead. Another potential catalyst is the Financial Accounting Standards Board's new rule allowing institutions to record cryptocurrency values more accurately, effective for fiscal years starting after Dec. 15. This regulatory shift could enhance institutional confidence and drive further adoption.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.