The Bitcoin price has recovered from its tax harvesting year-end drop. BTC is trading right around $97,000 after gaining over 3.4% over the last 24 hours before press time. Keep in mind that Bitcoin hasn’t been able to regain the $100,000 since it slipped below six figures on Dec. 19.
Isaac Joshua—the CEO of token launch platform Gems—told Decrypt there’s little doubt The downturn “can largely be attributed to end-of-year tax-loss harvesting by investors,” he explained.
“Many have liquidated both Bitcoin ETFs and the underlying asset itself to optimize their tax reports, a common phenomenon in financial markets during this period,” Joshua highlighted.
Ryan Lee—chief analyst at the research subsidiary of crypto exchange Bitget—explained in a recent note that “BlackRock’s Bitcoin ETF is poised to accelerate Bitcoin’s adoption by simplifying access for institutional investors, enhancing its legitimacy and facilitating mainstream acceptance.”
Lee’s remarks follow BlackRock’s iShares Bitcoin Trust (IBIT) surpassing $50 billion in assets under management. This milestone was achieved in just 228 days—more than five times faster than any other ETF in history.
Joshua expects multiple factors to bring recovery to BTC’s price this month. He expects “liquidity seeking re-entry into the market after the new fiscal year” and expects BTC “to benefit from increased demand.”
Furthermore, he expects “the recent inauguration of President Trump is likely to bring renewed optimism and pro-business policies, which historically have been favorable for risk-on assets like Bitcoin.” Joshua believes “that Bitcoin could rally to as high as $120,000 in the coming weeks.”
Lee, on the other hand, wrote that “Bitcoin is projected to trade between $83,000 and $120,000 in January 2025, with peaks near $120,000 likely following a potential correction.” He also noted that Long-term projections suggest sustained growth, with some forecasts placing Bitcoin’s value at $200,000 by 2025.” Still, actual price action will depend on “regulatory developments, market dynamics, and broader economic conditions.”
Edited by Stacy Elliott.
