Bitcoin analysts are projecting that the cryptocurrency could surge to $120,000 in January 2025, driven by a record-high reserve of stablecoins on Binance, nearing $45 billion. The anticipated rally comes after Bitcoin experienced a 10% drop from its all-time high of $108,300 on December 17. Market watchers suggest that the rally could be influenced by the inauguration of U.S. President-elect Donald Trump on January 20, with Bitcoin potentially hitting a local top above $120,000 before a possible sell-off due to profit-taking.
Ryan Lee, chief analyst at Biget Research, indicated that while Bitcoin could see impressive gains, investor caution is warranted due to potential market corrections spurred by profit-taking from 2024’s gains. He also advised monitoring Bitcoin ETF inflows, stock market trends, and anticipated FTX repayments on January 3 for a clearer picture of Bitcoin’s performance.
Further supporting these bullish forecasts, analysts emphasize the significant stablecoin reserves on Binance as a primary driver for the expected Bitcoin rally. As of December 31, stablecoin reserves on the platform exceeded $44.5 billion. This influx suggests increased buying power, signaling strong investor interest in cryptocurrency markets.
Bitcoin would need to overcome strong resistance levels above $95,000 and $96,400 to maintain upward momentum. Surpassing the $96,400 mark could result in the liquidation of over $1.24 billion in leveraged short positions across crypto exchanges.
Looking further ahead, some analysts are even more optimistic, predicting Bitcoin could reach $160,000 in 2025, bolstered by improving U.S. financial policies.
