Bitcoin Powers Above $105,000: Traders Eye $120K Amid Policy Shifts

In the kind of year-end flourish that has crypto enthusiasts talking of a “Santa Claus Rally,” Bitcoin has soared beyond the $105,000 mark for the first time, adding fresh fuel to an already heated debate over the digital asset’s place in mainstream finance. The latest rally, which saw Bitcoin power above $105,000 in early Monday trading, comes against a backdrop of newly supportive U.S. policies, a shifting regulatory environment, and the unrelenting momentum of institutional money crowding into digital currencies.

While Bitcoin continues to trade on multiple platforms, this surge aligns with speculation that the Trump administration will push through measures to further integrate cryptocurrencies into the nation’s financial fabric. Over the weekend, reports emerged suggesting that President Donald Trump may soon finalize a strategic bitcoin reserve fund—an initiative that, if confirmed, would represent one of Washington’s most concrete endorsements of digital assets to date. What’s more, Trump has tapped former PayPal executive David Sacks as a White House czar for artificial intelligence and cryptocurrencies, a role intended to shape policies that could keep Bitcoin’s trajectory pointed skyward.

Political tailwinds have been building for weeks, bolstered by pro-crypto lawmakers swept into office during November’s election season. According to industry insiders, more than $119 million poured into campaigns supporting candidates who promised to champion digital assets. The hope is that friendlier regulations and tax policies will be on the table, potentially unlocking a new wave of institutional investment and high-net-worth inflows.

There are already signs that heavyweight players are seizing the opportunity. Companies like Riot Platforms and MicroStrategy, both known for their sizable Bitcoin positions, have reportedly doubled down, making billion-dollar bets that the recent surge could be more than a passing phase. Optimism in Washington is pushing exchange-traded funds and other Bitcoin-linked financial products to the forefront. As Augustine Fan, head of insights at research firm SOFA, noted, traditional finance inflows are beginning to dominate sentiment. This differs markedly from earlier crypto cycles, where individual enthusiasts drove the action. Today, established financial institutions appear poised to treat digital assets as integral to their long-term strategies rather than as a speculative sideshow.

On the technical front, recent trading data suggests Bitcoin is forming higher lows, a classic sign of sustained upward momentum. Some chart-watchers point to the emergence of bullish continuation patterns—like a bull flag—as evidence that the rally may still have room to run. With Bitcoin now comfortably above $105,000, some traders are setting their sights on the $110,000 mark, while others have begun talking openly about a push toward $120,000.

December’s historical patterns only fan the flames of this optimism. Over the past eight years, Bitcoin has ended most Decembers on the upswing, with gains sometimes reaching double digits by month’s end. Market veterans attribute this seasonal strength to a combination of factors—from a general sense of year-end exuberance to the portfolio adjustments many investors make as the calendar turns. The “Santa Claus Rally,” once a niche narrative familiar only to crypto insiders, has in recent years filtered into mainstream discussions, underscoring that this is not your 2010-era Bitcoin anymore.

For those who have followed Bitcoin’s journey from fringe experiment to something approaching a legitimate asset class, these developments feel like a watershed moment. A new political environment, evolving regulatory posture, and institutional interest all seem to be converging at once. As the year heads toward its close, the question is no longer whether Bitcoin will remain relevant, but just how far it can climb—and whether its newfound champions in Washington and on Wall Street are prepared for the long ride ahead.