Bitcoin Hits $106K: Trump, MicroStrategy, and BlackRock Fuel Crypto Bull Run
Bitcoin (BTC) has rocketed to an unprecedented all-time high of $106,554, propelled by Donald Trump's potential executive order to designate
Bitcoin (BTC) has rocketed to an unprecedented all-time high of $106,554, propelled by Donald Trump’s potential executive order to designate Bitcoin as a U.S. reserve asset and MicroStrategy’s aggressive accumulation strategy, which has already secured 423,650 Bitcoin worth over $43.6 billion.
Bitcoin Price Dynamics and Market Sentiment
Rising about 16% over the past month and an amazing 55% since the November 5 US presidential contest, the bitcoin has shown an incredible surge. Measuring the present market mood using the Crypto Fear and Greed Index, the degree of “Extreme Greed” has reached 83 out of 100, the highest since early December.
Institutional Investors and Political Developments Support BTC Rally
Several key developments are propelling Bitcoin’s valuation:
- Potential Presidential Action: Strike CEO Jack Mallers suggests that Donald Trump might issue an executive order on his first day in office to designate Bitcoin as a US reserve asset. While not expected to be a massive 1 million coin purchase, Mallers describes it as a “significant position.”
- State-Level Bitcoin Reserves: Satoshi Action Fund CEO Dennis Porter revealed that a third state is preparing a Bitcoin reserve bill, following Texas and Pennsylvania’s lead. Porter anticipates at least 10 states will introduce similar legislation.
- MicroStrategy’s Continued Accumulation: Michael Saylor’s company has been consistently purchasing Bitcoin, with hints of potentially acquiring more at prices above $100,000. The firm currently holds 423,650 Bitcoin worth over $43.6 billion.
Bitcoin Price Predictions for 2025
Prominent analysts and institutions are offering bullish predictions:
- Perianne Boring of the Digital Chamber suggests Bitcoin could reach $800,000 by the end of 2025.
- PlanB, creator of the stock-to-flow model, predicts an average Bitcoin valuation of $500,000 in 2025, with potential peaks up to $1 million.
- BlackRock has recommended investors allocate 1-2% of their portfolio to Bitcoin, which could theoretically drive the price to around $900,000 if global reserve assets follow this allocation.
Bitwise Predicts Bitcoin Price at $200K
Bitwise Asset Management’s 2025 predictions are particularly optimistic, forecasting:
- Bitcoin potentially breaking $200,000
- Increased institutional adoption
- Government Bitcoin reserves potentially doubling
- Possible inclusion of crypto-related stocks in major indexes like S&P 500 and Nasdaq-100
BTC/USD Technical Indicators
Whale Action
Based on on-chain data, almost 27,000 Bitcoins—worth $2.8 billion—were transferred off of prominent exchanges over the weekend. This constrained availability on public markets could help to drive price increase even more.
Federal Reserve Interest Rate Cut Expectations
With a 0.25% interest rate cut expected from the US Federal Reserve on December 18, financial analysts hope to give Bitcoin’s price extra impetus.
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