 Bitcoin targets $120K in January amid record Binance stablecoin reserves 
2024-12-31
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The Bitcoin price may be setting up for a breakout to $120,000, bolstered by a new all-time high in stablecoin reserves on cryptocurrency exchange Binance.
Bitcoin BTCUSD could be setting up a recovery rally following its over 10% correction from the $108,300 all-time high recorded on Dec. 17, Cointelegraph Markets Pro data shows.
Driven by United States President-elect Donald Trump’s upcoming inauguration on Jan. 20, BTC could peak above $120,000 during January, according to Ryan Lee, chief analyst at Biget Research.
Bitcoin could see a local top of above $120,000 before a potential correction driven by profit-taking, the analyst told Cointelegraph, adding that the new year could also bring a “‘January effect,’ characterized by renewed investments and optimism, though profit-taking from 2024 gains may introduce market corrections, balancing bullish sentiment with caution.”
To gauge BTC’s performance, investors should be mindful of spot Bitcoin exchange-traded fund (ETF) inflows, the performance of the US stock market and incoming FTX repayments scheduled for Jan. 3, added Lee.
Lee’s predictions are in line with those of other analysts who foresee Bitcoin recapturing the six-figure price tag in January.
Based on Bitcoin’s correlation with the global liquidity index, BTC could peak at a local top above $110,000 in January before a potential correction.
Bitcoin rally’s primary fuel: Binance’s $45 billion stablecoin reserves
BTC’s rally during January is set to benefit from nearly $45 billion worth of stablecoins awaiting deployment.
Stablecoin reserves on Binance surpassed $44.5 billion on Dec. 31, nearing the $45.8 billion all-time high registered on Dec. 11, CryptoQuant data shows.
On Dec. 11, BTC gained over 4.7% intra-day to close above $101,000, driven by stablecoin reserves.
Increasing stablecoin inflows to crypto exchanges can signal incoming buying pressure and growing investor appetite, as stablecoins are the main investor on-ramp from fiat to the crypto world. 
However, Bitcoin still needs to overcome a significant resistance above $95,000 and $96,400.
A potential move above $96,400 would liquidate over $1.24 billion worth of leverage short positions across all crypto exchanges, CoinGlass data shows.
Analysts remain optimistic about Bitcoin’s 2025 trajectory, with some predicting a Bitcoin rally to $160,000 driven by improving financial policy in the US.