BTC price 'base case' now $140K: 5 things to know in Bitcoin this week

In mid-December 2024, Bitcoin reached a new all-time high, trading at $106,533 on December 16. Analysts have since adjusted their price targets, with some now considering $140,000 as a base case for the cryptocurrency's next significant consolidation phase. The analytics account Bitcoindata21 projected that Bitcoin could trend toward $140,000 by mid-January, identifying this level as a potential short-term peak.

Several factors contribute to this optimistic outlook:

• Federal Reserve Rate Cut: The Federal Open Market Committee is anticipated to implement a 0.25% interest rate cut on December 18, a move that could further stimulate investment in risk assets like Bitcoin.

• Political Developments: U.S. President-elect Donald Trump's expressed interest in establishing a strategic Bitcoin reserve has heightened market enthusiasm, with discussions suggesting that an executive order to purchase Bitcoin could be enacted as early as his first day in office.

• Market Indicators: Metrics such as Bitcoin's market value to realized value (MVRV) indicate that there is still room for growth before the profitability of held coins reaches unusually high levels, suggesting potential for further price appreciation.

These developments underscore the dynamic factors influencing Bitcoin's price trajectory as it continues its price discovery phase.