As of 9:50 a.m. UTC on Monday, December 16, Bitcoin is trading at $104,800, up 2.6% over the past twenty-four hours. Earlier today, Bitcoin reached an all-time high of $106,533 at 12:35 a.m. UTC, reflecting strong bullish momentum as the market awaits an important announcement from the U.S. Federal Reserve on Wednesday.

The crypto market’s bullish sentiment has been building throughout 2024, starting on January 10 when the U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETFs. A few months later, the SEC approved spot Ethereum ETFs, further boosting optimism in the sector. However, concerns about regulatory clarity for altcoins like Solana and Cardano persisted until the November 5th U.S. presidential election, when Donald Trump won, solidifying confidence in a more favorable regulatory environment.

Trump’s victory catalyzed a massive rally in the crypto market. Bitcoin, which traded at $68,500 on November 4, has surged roughly 52% to its current price. This momentum is driven by Trump’s promises during his campaign, including his speech at the Bitcoin 2024 conference in July. There, he pledged to be the “crypto president,” vowing to fire SEC Chair Gary Gensler on his first day in office, establish a strategic Bitcoin reserve, and champion cryptocurrency innovation in the United States.

Since his victory, Trump has also named several pro-crypto individuals to key positions:

• David Sachs: Venture capitalist and former PayPal COO, appointed as the White House’s Crypto and AI Czar.
• Scott Besant: Selected as Treasury Secretary.
• Paul Atkins: Nominated as the new SEC Chair.

The Federal Open Market Committee (FOMC) meeting scheduled for December 17–18 will also play a pivotal role in shaping Bitcoin’s near-term trajectory. According to the CME FedWatch Tool, there is a 97.1% probability that Fed Chair Jerome Powell will announce a twenty-five basis point rate cut. The decision will be announced via a press release at 2 p.m. Eastern time on Wednesday, followed by Powell’s press conference at 2:30 p.m.

Historically, Bitcoin has shown positive momentum during December, with many in the cryptocurrency community referring to this seasonal uptrend as the “Santa Claus rally.”

Despite the optimistic outlook, some market participants remain cautious. Concerns linger that Powell may strike a hawkish tone during his press conference, signaling a more restrained approach to monetary easing in 2025 due to persistent inflationary pressures.