In the early days of 2025, Bitcoin reclaimed the six-figure price level, recently trading around $102,000, marking the highest level since December 2024 and a 4.3% increase in the past 24 hours. The broader cryptocurrency market, including Ethereum and Solana, also recorded positive gains.
After experiencing a correction at the end of 2024, with BTC dropping to a local low of $91,000, demand returned as institutional investors, such as MicroStrategy and KULR Technology Group, announced significant buy-ins. Inflows into spot Bitcoin ETF funds reached $908 million, indicating growing demand.
Analysts note that the recent price recovery appears to be driven by spot buying rather than leverage, and open interest in futures contracts has declined. While the outlook remains optimistic for the upcoming cryptocurrency market due to the new U.S. administration, experts warn of potential volatility and risks related to the Federal Reserve's monetary policy and inflation concerns.
In another development, prosecutors estimate that Do Kwon, co-founder of Terraform Labs, may have over a million global victims following the collapse of the Terra ecosystem. In a court filing, U.S. Prosecutor Daniel Gitner outlined a plan to notify victims of their rights, including the creation of a website for public procedures, as other notification methods were impractical.
Kwon, who recently pleaded not guilty to nine serious fraud charges, was extradited from Montenegro and is now facing legal challenges in the United States. His case is part of a broader scrutiny of prominent figures in the cryptocurrency space, with Kwon and Terraform found liable for fraud in a civil case, leading to potential penalties exceeding $4.5 billion.
The future of the cryptocurrency market in 2025 looks promising but also full of challenges. Investors should carefully consider before entering this evolving and volatile market.
