The price of Bitcoin (BTC) has exceeded $100,000 for the first time in a fortnight, driven by renewed momentum following the anticipated confirmation of Donald Trump’s victory in the US election by Congress this week.
Based on Bloomberg data, the leading cryptocurrency in the market surged over 4% in a 24-hour period to reach $102,500 on Monday, marking an 11% increase for the week—its highest jump since November 24.
Bitcoin Hits New Milestone: Crosses $100,000 Mark
Bitcoin’s performance in 2024 slowed down towards the end of December as investors aimed to lock in their profits. However, the prospect of a crypto-friendly government under Trump has reignited interest, driving Bitcoin to a new all-time high of $108,000.
With Congress set to certify Trump’s victory, market sentiment is positive. Khushboo Khullar, a venture partner at Lightning Ventures that invests in Bitcoin-related firms, mentioned, “A super cycle in 2025 is anticipated due to regulatory changes under the Trump administration.”
A significant influx of funds into Bitcoin exchange-traded funds (ETFs) has also contributed to this uptrend. Investors poured a net sum of $908 million into US Bitcoin ETFs on Friday, marking the fifth-largest inflow since their launch in January 2024, following a record net outflow of $680 million on December 19.
Another positive indicator for Bitcoin traders is the resurgence of the Bitcoin Coinbase Premium, a measure of price difference between Bitcoin on Coinbase and Binance. After hitting its lowest point since 2022, the premium has bounced back, indicating increasing demand for Bitcoin among American investors.
Joe McCann, CEO of Asymmetric, a crypto hedge fund in Miami, pointed out that ETF issuers primarily transact with Coinbase, implying that ETF demand can influence premium or discount rates.
Key Price Levels in Focus
Looking ahead to 2025, Bloomberg emphasizes that the trajectory of Bitcoin will be heavily influenced by Trump’s commitment to his crypto-related promises, including the establishment of a national Bitcoin reserve.
Despite this, doubts linger about the sustainability of the current rally. A recent MLIV Pulse survey revealed that 39% of respondents considered Bitcoin the investment most susceptible to losses in 2025, the highest percentage among all options.
In terms of technical analysis, market expert Morecryptoonl noted that Bitcoin has formed a clearer five-wave pattern, with a potential bearish outcome if specific support levels are breached.
Currently, maintaining support for wave two is crucial, with an expected minimum target of $100,800 after the completion of wave one. Key support zones are identified between $93,144 and $96,554, likely to be tested after wave one confirms its peak.
Regarding Bitcoin ETFs, Glassnode suggests that the buying trend remains strong, driven by seasonal factors. With Inauguration Day approaching, the firm anticipates increased buying activity from traditional finance investors, potentially impacting Bitcoin’s price movements further.
At the time of this writing, BTC has retraced towards the $101,888 level but continues to show significant gains across all time frames.
Image credits: DALL-E, TradingView.com
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