Bitcoin Price Rebounds After Tax Collection Selloffs

The Bitcoin price The decline in tax collection was restored by the end of the year. BTC is trading right around $97,000 after gaining over 3.4% in the last 24 hours to press time. Keep in mind that Bitcoin hasn’t regained $100,000 since falling below six figures on December 19th.

Isaac Joshua is the CEO of Gems token launch platform Deciphering There is no doubt that the decline “could be largely attributed to investors’ end-of-year tax losses,” he explained.

“Many have liquidated both Bitcoin ETFs and the underlying asset itself to optimize their tax returns, a common practice in financial markets during this period,” Joshua pointed out.

“BlackRock’s Bitcoin ETF is poised to accelerate Bitcoin adoption by simplifying access for institutional investors, increasing its legitimacy and facilitating mainstream adoption,” Ryan Lee — chief analyst at crypto exchange research affiliate Bitget — explained in a recent note.

Lee’s comments follow BlackRock’s iShares Bitcoin Trust (IBIT). Assets under management exceed $50 billion. This milestone was achieved in 228 days — five times faster than any other ETF in history.

Joshua expects several factors to restore the BTC price this month. He expects “liquidity to re-enter the market after the new financial year” and expects BTC to “benefit from increased demand”.

Furthermore, he expects that “President Trump’s recent inauguration could bring renewed optimism and pro-business policies that have historically been favorable to risk assets like Bitcoin.” Joshua believes that “Bitcoin could rise to $120,000 in the coming weeks.”

Lee, on the other hand, wrote, “Bitcoin is forecast to trade between $83,000 and $120,000 in January 2025, with peaks near $120,000 after a possible correction.” He also noted that long-term forecasts suggest steady growth, placing the price of Bitcoin at $200,000 by 2025. However, actual price action will depend on “regulatory changes, market dynamics and broader economic conditions.”

Edited by Stacey Elliott.