Written by: shaofaye123, Foresight News.
Entering 2025, Bitcoin has once again broken through the 100,000 USD mark, and the market seems to be gradually warming up amid fluctuations.
On January 6, around 10 PM, the BTC price rose and broke through 100,000 USD, currently hovering around 102,000 USD. ETH also quickly rebounded and broke through 3,600 USD. Good news keeps coming; BTC has recorded seven consecutive days of positive daily closes, and the market seems to be gradually becoming optimistic. What is happening in the market?
BTC market data is looking good.
The data on Bitcoin spot ETFs is one of the important reference indicators for observing the inflow of off-exchange funds. Looking back at December, according to SoSoValue data, there was continuous positive inflow in the first half of the month, while the second half's performance was less than satisfactory. Since entering January, Bitcoin spot ETFs have once again achieved net inflows, with a total net asset value reaching 111.46 billion USD, and the ETF net asset ratio (the market value relative to Bitcoin's total market value) reaching 5.72%, with a historical cumulative net inflow of 35.91 billion USD.
Various institutions are increasing their BTC holdings.
On January 3, according to official news from MicroStrategy, the company plans to raise 2 billion USD through the issuance of preferred stock in the first quarter to buy more BTC. This lays a foundation for increased buying pressure on BTC. According to Bitwise CEO Hunter Horsley, "Based on HODL15Capital statistics, since last Monday, 11 listed companies have purchased more Bitcoin. In 2025, a large number of companies will join the Bitcoin standard. Michael Saylor has scripted a movement."
MicroStrategy has now purchased Bitcoin for nine consecutive weeks. On January 6, it increased its holdings by another 1,070 Bitcoin for approximately 101 million USD, with an average price of 94,004 USD, bringing its total holdings to 447,470 BTC, valued at approximately 44.3 billion USD.
According to Bitcoin mining company MARA Digital, it will continue to increase its Bitcoin holdings on its balance sheet in 2025. Its current holdings are approximately 44,000 BTC, valued at over 4 billion USD. The U.S. listed company KULR has now increased its holdings by 213.43 BTC, bringing its total holdings to 430.61 BTC.
Japanese company Metaplanet plans to increase its Bitcoin holdings to 10,000 in 2025 to expand its influence in Japan and the Bitcoin ecosystem.
According to Cointelegraph, El Salvador has increased its holdings by 5 BTC since the beginning of the new year, bringing its total holdings to 6009 BTC, valued at approximately 595 million USD. Major institutions around the world are increasing their BTC holdings, and the buying power for BTC continues to grow.
Trump-themed Memecoins have seen an increase, and the altcoin sector continues to warm up.
Since Trump's successful election in early November, the market has seen a month-long sustained rise. In the early hours of January 7, the U.S. Congress officially confirmed Trump's election as president, with his inauguration approaching, related crypto projects and tokens are once again attracting attention.
The Trump-themed Memecoin TRUMP has seen a continuous rise for three days since January 4, with an increase of over 80%; MAGA, TRUMPCOIN, and other Memecoins have also seen nearly 100% increases, although there was a slight retreat yesterday. However, the family project World Liberty Financial's holdings in LINK, AAVE, ENA, COW, and other tokens have not seen significant increases.
Trump's crypto-friendly attitude is a significant factor for the market's recent optimism. However, according to Reuters, Angeles Investments Chief Investment Officer Michael Rosen stated that Trump's inauguration may also bring some surprises to the market, as he is expected to issue at least 25 executive orders on his first day in office, covering a range of issues from immigration to energy and cryptocurrency policy.
Currently, the sentiment in the crypto market has entered a relatively optimistic state, and the altcoin sector continues to recover. According to Alternative.me data, the cryptocurrency fear and greed index has gradually risen above 70 since January, reaching 78 today, indicating a shift to an 'extremely greedy state'.
Compared to Bitcoin's rapid rise, altcoins are mixed in performance. In the 24-hour rise, the public chain SOL has once again broken through 220 USDT, achieving an increase, while AVAX has seen an approximate 6% rise. The rest of the public chains have stagnated, with SUI retreating to 5 USDT after reaching a new high, and TON fluctuating around 5.7 USDT.
The Ethereum ecosystem, including DeFi, re-staking, L2, stablecoins, and other sectors, also experienced a brief pullback. EIGEN saw a slight decline after three consecutive days of increase, LDO dropped about 3%, ENA experienced a significant correction of around 10%, and OP, ARB, etc., also saw a slight decline after five consecutive days of positive closes.
The Tech Spring Festival Gala CES is held, and AI concepts receive positive news again.
The 'Tech Spring Festival Gala' CES 2025 (International Consumer Electronics Show) will kick off from January 7 to January 11 in Las Vegas, USA. During the exhibition, tech giants like NVIDIA, AMD, Toyota, and Samsung will all showcase their latest products and strategic plans aimed at consumers.
In this context, on January 6, U.S. stocks saw a pleasing rise, with the Dow Jones rising over 380 points, and the Nasdaq rose 2% before retreating. The chip index rose over 4% at one point. The 'Tech Seven Sisters' achieved broad gains, with Meta in the metaverse rising 4.23%, NVIDIA up 3.43%, Google A up 2.65%, Amazon up 1.53%, Microsoft up 1.06%, Apple up 0.67%, and Tesla up 0.15%.
With NVIDIA CEO Jensen Huang set to deliver a keynote speech on January 7, NVIDIA's stock price has risen for three consecutive days, reaching a new high. According to market news, Huang may officially announce the new generation of GeForce RTX50 series graphics cards, including the RTX5090, 5080, and 5060, during the speech.
In the cryptocurrency market, AI application coins are experiencing a broad rise, with AI Memecoins maintaining their upward momentum. WLD has risen over 10% in 24 hours, RENDER has increased by 8%, and IOTA has risen by 6%. In the last 24 hours, except for a slight decline in VIRTUAL, ZEREBRO, FARTCOIN, and others, the rest have all achieved gains. SWARMS is approaching a market capitalization of 500 million, achieving over 80% increase. AI16Z reached 2.25 USDT, with an increase of over 25%. GRIFFAIN, ARC, and others have all risen over 20%, and AIXBT has once again risen above 0.55 USDT.
How analysts view it.
In early February 2024, 10X Research founder and research director Markus Thielen stated, "Bitcoin often rises by 11% before and after the Lunar New Year." Over the past nine years, traders who bought Bitcoin three days before the Lunar New Year and sold it ten days after the Lunar New Year have seen good returns. The 2025 Spring Festival falls on January 29, which is earlier compared to previous years, making the market performance worth looking forward to.
Ledn Chief Investment Officer John Glover stated that Bitcoin may fall back to 89,000 USD, then rebound, reaching 125,000 USD by the end of the first quarter, and potentially challenging 160,000 USD by the end of this year or early next year.
Bitfinex released a report stating, "We see that the market remains strong. Although there may be a deeper correction in the first quarter of 2025, the bullish sentiment among miners and the overall tightening of supply indicate that Bitcoin has good upside potential in the medium term. The overall selling pressure from miners, long-term holders, and other groups has significantly eased. The supply entering circulation in the market has decreased, alleviating the impact of the recent correction."
Bernstein analysts released ten predictions for the crypto industry in 2025, stating that "the crypto industry will enter an 'infinite era', with a Bitcoin price target of 200,000 USD in 2025, the stablecoin market size surpassing 500 billion USD, net inflows into spot Bitcoin ETFs exceeding 70 billion USD, and the integration of crypto and artificial intelligence deepening further."
However, some analysts have expressed concerns about the market.
QCP stated, "A large-scale short squeeze is not expected in the short term, and the catalysts related to Trump may have to wait until after the inauguration on January 20 to appear."
BitMEX co-founder Arthur Hayes stated in his latest blog (Sasa) that he believes the crypto market will peak in mid-March and then experience a severe correction. He advises investors to sell in the later part of the first quarter and wait for improved liquidity conditions in the third quarter.
