Bitcoin Hits $107K All-Time High Amid Optimism Over US Treasury Reserve 

The Bitcoin price upheld its bullish momentum on Dec. 16 after hitting a new all-time high at $107,144 on Bitstamp before a slight pullback to $106,930 at the time of writing. The price of the pioneer cryptocurrency rose 3.7% in just 24 hours and has rallied 10% over the last 7 days.

Trading volumes have also shot up 80% to hit a high of $80.84 billion in the past 24 hours. This suggests increased investor interest in BTC after the new record highs. Investors could be rushing to buy Bitcoin, expecting a new rally to $110,000 ahead of Trump’s inauguration. 

Various factors are behind Bitcoin’s recent push to new all-time highs, including the possibility of the United States setting up a strategic Bitcoin reserve.

According to Jack Mallers, founder and CEO of Strike, President-elect Donald Trump is likely to issue an executive order on his first day in office to designate Bitcoin as a US reserve asset. Speaking in a podcast interview with YouTuber Tim Pool, Mallers stated that Trump could rely on provisions within the so-called “Dollar Stabilization Act,” which grants him considerable authority to protect the US dollar.

Additionally, Mallers has added that ‘’there’s potential to use a day-one executive order to purchase Bitcoin.’’

Already Republican Senator Cynthia Lummis has initiated the process with the Bitcoin Act of 2024 bill titled Boosting Innovation, Technology, and Competitiveness Through Optimized Investment Nationwide (BITCOIN). If it passes, the US will buy one million BTC over the next five years, making up 0.5% of Bitcoin’s total supply. The idea is to use Bitcoin as a tool to reduce the US $35 trillion debt.

Russia is also said to be in the process of creating a Bitcoin reserve. Speculation for such a reserve has grown after the Russian President Vladimir Vladimirovich Putin hailed Bitcoin as a way to shore up his country’s reserves after the ones it had were taken following the invasion of Ukraine.

Since it has a finite supply, this rush by countries to create a Bitcoin reserve could trigger a significant price rally for Bitcoin. 

Bitcoin’s hash rate has hit a new ATH, signaling more positive momentum for BTC price, especially with the added security and infrastructure growth.

​​The Bitcoin hash rate refers to the total computational power of the Bitcoin network, measured by the number of crypto mining “hashes” (attempts to solve a cryptographic puzzle) that miners on the network can perform per second. 

This metric is used to measure how much computing power is being used to verify and process transactions on the Bitcoin blockchain network. A higher hash rate signifies greater network security and decentralization, which is bullish for BTC.

The Bitcoin price trades with a bullish bias, holding steady within a rising parallel channel.

A closer look at the outlook of the Relative Strength Index (RSI), shows a looming buy signal, which would be executed if this indicator crosses above the 70 line. The value at 70 suggests that there is still more room for BTC on the upside.

Here at CoinHint, our analysis suggests that if the $103,000 support level holds, the Bitcoin price could rally above the all-time high toward the upper boundary of the ascending channel around $108,000. Beyond that, BTC will enter price discovery with the bulls first targeting the $110,000 psychological level. 

Conversely, data from IntoTheBlock reveals that almost 100% of all Bitcoin investors are currently in profit. If these investors decide to book profits, the BTC price could see a slight correction. 

In such a directional bias, only a break and close below $100,000 would spook investors. In the worst case where the altcoin slides lower, a candlestick close below $97,425, embraced by the lower boundary of the rising channel, would trigger panic selling.