🪙 Bitcoin Returns Above $100K as Early 2025 Crypto Rebound Continues
Bitcoin (BTC) has surged back above $100,000, reaching approximately $102,000, marking its highest level since December 19. This rebound is part of a broader recovery in the cryptocurrency market as traders return from the holiday season. The CoinDesk 20 index, which tracks major cryptocurrencies, also saw a 3.5% increase, with Ethereum (ETH) up 2.8% and Solana (SOL) rising 4.5%.
Demand for Bitcoin is returning, highlighted by significant inflows into spot Bitcoin exchange-traded funds (ETFs), totaling $908 million recently. Institutional purchases, including MicroStrategy's acquisition of 1,020 BTC, indicate renewed interest in the asset.
While the early 2025 rebound is promising, analysts caution about potential volatility and market corrections, particularly as the Federal Reserve's monetary policy remains a significant risk factor. Predictions suggest a possible sell-off later in the month ahead of the Fed's meeting, despite the current bullish sentiment surrounding Bitcoin and the upcoming U.S. administration.
