A sharp correction is a sign of a bull market. Will Bitcoin soon reach $120,000?

Here is the English translation: On Tuesday, December 17, the price of Bitcoin surged, breaking through $108,000 and setting a new all-time high, before retreating. Just last week, the digital currency had dipped below $95,000, but in the following days, it exhibited strong momentum. Although Bitcoin is currently experiencing a sharp correction, as we enter the traditionally strong second half of December, the market expects Bitcoin to potentially reach new highs soon, targeting the $120,000 level. Set the longest 7-week consecutive gain record of 2021 Bitcoin's performance this year has been nothing short of spectacular, continuously setting new records. At the start of the year, the US SEC approved 11 spot Bitcoin ETFs, injecting new vitality into the Bitcoin market and causing the Bitcoin price to surge to an all-time high in March. At the end of the year, with Trump's re-election as US President, who is supportive of cryptocurrencies, Bitcoin experienced another strong rally, breaking the $100,000 milestone for the first time. This landmark achievement not only demonstrates the market's enthusiasm, but also signifies Bitcoin's increasingly entrenched position in the global financial system. Since the US election on November 5, the price of Bitcoin has surged over 57% and set the longest 7-week consecutive gain record of 2021. During this period, US Bitcoin ETFs have attracted nearly $13 billion in net inflows, driving the total assets under management of related funds to $113.7 billion, highlighting the strong interest of institutional capital in the crypto market. Trump reaffirms Bitcoin strategic reserve, igniting market enthusiasm Last week, in a media interview, Trump stated, "We're going to do some great things in the cryptocurrency realm." He pointed out that more and more countries are embracing cryptocurrencies, but "we have to be the leader." When asked if he plans to establish a cryptocurrency reserve similar to the strategic oil reserve, Trump gave an affirmative response. Beyond the federal level, US states have also begun exploring digital currency reserve programs. A Texas state legislator submitted a bill last week to establish a state-level Bitcoin strategic reserve. As the world's 8th largest economy, on par with Canada, Texas' move may have a demonstrative effect on other states. On Tuesday, an Ohio state representative introduced a bill to establish a Bitcoin reserve within the state treasury, making it the third US state to do so in just one month. The improving policy environment is also changing the attitude of traditional financial institutions towards cryptocurrencies. Last Friday, Nasdaq announced that the Bitcoin "whale" company MicroStrategy will be included in the Nasdaq-100 Index, a move that enhances the stock's appeal and helps the company raise more equity to purchase more Bitcoin. The market has reacted enthusiastically to Trump's support for crypto assets and his explicit plan to include Bitcoin in the strategic reserve, as this policy-oriented signal has greatly boosted market confidence. Can Bitcoin reach $120,000 before Trump's inauguration? Bitcoin's strong performance is just one step away from $110,000, and with the traditionally strong second half of December approaching, Bitcoin is expected to soon break through $120,000 and set a new record high. December is historically a bullish month for Bitcoin, known as the "Santa Claus rally." Data from the past eight years shows that since 2015, Bitcoin has ended December with gains in five out of those years, with the lowest gain being 12%. During the mid-to-late December period of the past two halving cycles, Bitcoin has risen by around 26% (2016) and 50% (2020). If this year follows a similar trajectory, Bitcoin could reach a high of $130,000 to $150,000. Furthermore, the "all-in" crypto stance of Trump's cabinet has instilled market confidence in the future implementation of crypto-friendly policies. Factors such as the US election dividend and the prospect of the US adopting Bitcoin as a strategic reserve asset may lead to a surge of market sentiment before Trump's formal inauguration, propelling Bitcoin towards the $120,000 mark. , , , , , , ,