After hitting record highs in recent weeks, many in the crypto community are fixated on a single question: Can Bitcoin reach $120,000 in January?
Bitcoin has skyrocketed historic heights The price has risen sharply in recent weeks, and many in the crypto community are fixated on a single question: Will it reach $120,000 in January?
Due to a confluence of factors – from record reserves of stablecoins on major exchanges to expected policy changes in US politics – investors and analysts are seeing the start of the new year as a potential springboard for Bitcoin’s next big jump.
A boost on Inauguration Day
Some market observers point to the upcoming US presidential inauguration on January 20 as a possible catalyst. The theory is that a new government could trigger a wave of optimism in risky assets, including Bitcoin.
A veteran market strategist says that “new political leadership is often accompanied by a change in investors’ view of both fiscal policy and monetary support,” opening the door for new enthusiasm for digital currencies.
Wall Street’s so-called “January effect” – when new investments and portfolio rebalancing can boost stock prices – could also benefit Bitcoin. According to a crypto research executive, this seasonal pattern could set the stage for a six-figure rise before profit-taking triggers a correction. “It’s a rally driven by optimism,” said a senior analyst at a global trading firm. “Investors are coming up with new allocations and Bitcoin’s volatility often amplifies these moves.”
$45 billion in stablecoins are waiting on the sidelines
Observers point to the massif Stablecoin Reserves for larger…
