Bitcoin In 2025 : Why Does This Rally Towards $120,000 Seem Inevitable ?

Crypto analysts are discussing a spectacular Bitcoin rally starting in January 2025. This would be fueled by economic factors as well as massive liquidity flows. All details in the following paragraphs!

JUST IN: 🟢 Bitcoin targets $120K in January amid record Binance stablecoin reserves

Coin: BTC | Source: CoinTelegraph
Full story → https://t.co/s97eUDjXQS

— Alphaskout (@alphaskout) December 31, 2024

Bitcoin fueled by Binance’s stablecoin reserves

In recent days, the stablecoin reserves at Binance have reached historic highs. Data indicates nearly $45 billion at the end of December. Often used to purchase digital assets like Bitcoin, these funds signal a potential for massive buying.

According to CryptoQuant, the increase in these reserves often coincides with significant price hikes in Bitcoin, as observed on December 11, 2024. On that day, the BTC price increased by 4.7% in one day.

Stablecoins serve as a bridge between fiat currency and cryptocurrencies. Their influx into exchanges indicates an increase in buying pressure. This is a key factor in supporting a rally towards $120,000. However, BTC will need to break through major resistances around $95,000 and $96,400 before continuing its ascent.

Bitcoin at $120,000 : What are the economic and political catalysts ?

The inauguration of American President Donald Trump, scheduled for January 20, 2025, could play a crucial role in the next Bitcoin rally. This event indeed fuels a renewed optimism in the markets. Additionally, there is the January effect, which often signifies increased investments.

Ryan Lee, an analyst at Biget Research, even anticipates a local peak beyond $120,000 followed by a correction due to profit-taking. According to him, investors should monitor:

• the expected FTX repayments in early January,
• the impact of spot Bitcoin ETFs on the markets.

Bitcoin thus seems to be on the brink of a decisive period, where investors’ optimism intertwines with market realities. The future will tell us whether the forecasts of crypto experts are correct or not.