A fresh record high of stablecoin reserves on cryptocurrency exchange Binance suggests that the price of Bitcoin Eyes $120K could be preparing to break out to $120,000. Based on statistics from Cointelegraph Markets Pro, Bitcoin BTC ($93,827) may be ready for a rally after a 10% fall from its all-time high of $108,300 on December 17th.
According to Ryan Lee, chief analyst at Biget Research, Bitcoin might reach a high of more than $120,000 in January, propelled by the impending inauguration of US President-elect Donald Trump on January 20.
Bitcoin May Hit $120K Before January Correction
The expert told Cointelegraph that Bitcoin could reach a local peak above $120,000 before a possible correction due to investors selling their gains, which could send prices tumbling. The analyst also mentioned the possibility of a “‘January effect,’ characterized by renewed investments and optimism, though profit-taking from 2024 gains may introduce market corrections, balancing bullish sentiment with caution.
According to Lee, investors who are interested in judging the performance of Bitcoin Eyes $120K should monitor spot Bitcoin ETF inflows, the stock market in America, and the incoming FTX repayments set to take place on January 3.
Bitcoin May Hit $110K with Binance Reserves
Bitcoin might reach a local high above $110,000 in January before seeing a decline. The main driver of the Bitcoin rally: Binance’s stablecoin reserves of $45 billion. We are ready to deploy approximately $45 billion in stablecoins, supporting Bitcoin’s rise in January.
According to CryptoQuant data, Binance’s stablecoin reserves hit $44.5 billion on December 31st, drawing closer to the all-time high of $45.8 billion set on December 11th. Reserves of stablecoins propelled Bitcoin’s 4.7% intraday increase to a close above $101,000 on December 11th.
Because stablecoins are the primary entry point for investors leaving the fiat world and entering the Crypto world, increasing the number of stablecoins traded on cryptocurrency exchanges may indicate rising investor hunger and purchasing pressure. Still, the $95,000 and $96,400 levels provide formidable obstacles that Bitcoin Eyes $120K must surmount.
Bitcoin Could Spark $1.24B Liquidations Above $96K
If the price of a cryptocurrency were to rise to a level that was greater than $96,400, massive short positions that were worth more than $1.24 billion would be liquidation across all exchanges, as said by the information that was provided by CoinGlass. Many analysts are still optimistic about Bitcoin’s potential in 2025; some even predict that it will skyrocket to $160,000 as a result of weakening monetary policy in the United States.
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