How High Can Bitcoin Price Go This December?

Bitcoin price saw a solid 37.3% increase in November following Donald Trump’s victory in the US presidential election. Historical data shows that the BTC rally can continue by another 46% in December. While BTC is currently hovering around $96,600, this recovery could push it to $141,000 by year-end.

Will Bitcoin Price Rise in December?

After an incredible 37.3% gain in November, Bitcoin is looking forward to a strong end to the year in December. Blockchain analytics platform Spot On Chain reported that Bitcoin price has historically increased by an average of 30-46% in December following elections.

At press time, BTC price is $96,922 with a market cap of $1.918 trillion. So if Bitcoin repeats its previous performance, the $100,000 mark seems to be within easy reach. Given the new FOMO-driven market dynamics, their updated model now predicts that BTC could rise to $115,000 by the end of December if we are looking at a 30% gain from here. In the event of a 46% increase, the BTC price increase could further extend to $141,000 by the end of December.

Furthermore, popular crypto analyst Ben Armstrong aka BitBoy believes that Bitcoin price could rise to the $100,000 level from here in the next 48 hours. BitBoy bases its prediction on BTC’s future perpetual data. He noted:

“It’s time, guys. The next 48 hours. BTC will reach $100,000. The moment we’ve been waiting for. Appreciate it. We’ll only get it once.”

Significant decline in Bitcoin exchange reserves

According to data from 10x Research, Bitcoin supplies on exchanges could dry up pretty quickly. Unlike the late summer influx that temporarily boosted exchange inventories, current on-chain data shows a sharp decline in supply. Furthermore, long-term holders remain steadfast and choose not to enter Bitcoin into the market. This can provide an additional catalyst for Bitcoin price from here.

On the other hand, Bitcoin ETFs have seen inflows of more than $31 billion since their launch, drawing huge supply from the market. BlackRock’s traditional funds are also reportedly seeking exposure to spot Bitcoin ETFs. 10x Research stated that only three exchanges – Bitfinex, Binance and Coinbase – currently have enough BTC inventory. It added:

“Considering that $30 billion in Bitcoin ETF inflows would only secure 300,000 BTC at current prices, Bitfinex’s reserves could last about a year, while Binance and Coinbase have enough supplies.”

Veteran Bitcoin analyst Willy Woo also confirmed this by saying: “If you want to get an idea of ​​the situation, take a look at the BTC reserves on the exchanges, nothing less than a supply shock.” I don’t know, who is buying, but short-term traders are selling their coins to a BTC vacuum cleaner.”

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a strong understanding of financial markets. His interest in business and finance has led him to focus on the emerging blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he has acquired. In his free time, Bhushan enjoys reading thriller novels and occasionally exploring his cooking skills.

Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.