Bitcoin has recently surpassed the $100,000 threshold for the first time in two weeks, driven by renewed investor enthusiasm. This surge follows a period of stagnation in late December when investors were focused on securing their gains.
Market Surge and Investor Sentiment
The leading cryptocurrency saw a significant increase of over 4% within a 24-hour period, reaching $102,500 on Monday. This marks an impressive weekly rise of 11%, the highest since late November. The optimism surrounding a pro-crypto administration under Trump has reignited interest in Bitcoin, pushing it to a record peak of $108,000.
As Congress prepares to certify Trump’s win, market sentiment remains bullish. A venture partner at Lightning Ventures has indicated that a significant “super cycle” is anticipated in 2025, driven by expected regulatory changes from the Trump administration. This reflects a broader belief that favorable policies could enhance the cryptocurrency landscape.
Investment Trends in Bitcoin ETFs
A notable factor contributing to Bitcoin’s recent rally is the surge in investments in Bitcoin exchange-traded funds (ETFs). Recently, investors injected a net $908 million into US Bitcoin ETFs, marking the fifth-highest inflow since their inception in January 2024.
- This follows a historic net outflow of $680 million recorded on December 19.
- The rebound in the Bitcoin Coinbase Premium further underscores the rising demand among US investors.
The CEO of a Miami-based crypto hedge fund noted that ETF issuers primarily transact with Coinbase. This suggests that the demand for ETFs can significantly influence the premium or discount rates. Looking ahead to 2025, Bitcoin’s trajectory will heavily depend on Trump’s commitment to his crypto-related promises, including the establishment of a national Bitcoin reserve.
Market Analysis and Technical Indicators
However, skepticism remains regarding the sustainability of the current rally. A recent survey revealed that 39% of participants consider Bitcoin the investment most likely to falter in 2025, the highest percentage among all options. From a technical perspective, a market expert has identified a distinct five-wave pattern in Bitcoin’s price movements.
This pattern suggests a potential bearish outcome if certain support levels are breached. Currently, the second wave must maintain support, while the first wave is deemed complete but is expected to reach a minimum of $100,800. Key support zones have been identified between $93,144 and $96,554, which may come into play if the first wave validates its peak.
Future Outlook and Volatility
In addition to technical indicators, the purchasing trend for Bitcoin ETFs remains robust, driven by seasonal influences. As Inauguration Day approaches, a market analysis firm anticipates increased buying activity from traditional finance investors, which could further impact Bitcoin’s price movements.
At the time of reporting, Bitcoin has retraced to approximately $101,888 but continues to show significant gains across all time frames. This reflects ongoing volatility and potential for further price fluctuations in the near future. The interplay between regulatory developments, market sentiment, and technical analysis will be crucial in shaping Bitcoin’s performance as it navigates the evolving landscape of cryptocurrency investment and governance.
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