According to Bitpush data, Bitcoin reached an all-time high of $107,822 around 1:30 PM Eastern Time on Monday, up about 5.5% from last Friday's close. Meanwhile, Ethereum also performed strongly, briefly climbing to $4,081, marking its highest point since December 2021, slightly exceeding the price peaks of early March and early December this year.

As of the time of writing, Bitcoin's upward momentum has receded, with the current price at $105,815, up about 3% for the day and 9% for the week. Ethereum stands at $4,029, up more than 3% for the day, but still 16% lower than the historical high of $4,878 set in November 2021. Currently, the total market capitalization of cryptocurrencies is $3.7 trillion, having increased by 2.97% in the past 24 hours.

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Data shows that in the past 24 hours, the total amount of liquidations in the crypto market reached $489 million, with liquidations for Bitcoin amounting to $177 million and Ethereum (including long positions) liquidations at $97 million.

Cryptocurrency fund inflows hit an all-time high

Global cryptocurrency funds continue to be favored by institutional investors, with inflows hitting an all-time high. According to CoinShares data, global cryptocurrency funds recorded net inflows totaling $3.2 billion over the past four weeks. This positive trend has brought the total inflows for the year so far to $44.5 billion, more than four times that of any previous year.

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Bitcoin exchange-traded funds (ETFs) listed in the United States have recently performed exceptionally well. In the past week, these ETFs attracted $2.17 billion in net inflows, with total inflows exceeding $5.3 billion since their launch in January this year.

Not just Bitcoin, Ethereum funds have also recorded net inflows for seven consecutive weeks, totaling $1 billion. Market optimism towards Ethereum continues to rise, driving ongoing inflows. Bernstein analyst Gautam Chhugani stated: "In the past two weeks, inflows into Ethereum ETFs have exceeded $800 million per week, showing an accelerating trend."

In addition, several altcoin funds have seen varying degrees of net inflows. XRP investment products recorded $145 million in net inflows last week, while funds based on Polkadot and Litecoin received inflows of $3.7 million and $2.2 million, respectively.

'Christmas rally'

Investor sentiment has been boosted by MicroStrategy (MSTR.O) being added to the tech-heavy Nasdaq 100 index. MicroStrategy's stock price has surged more than sixfold this year, with a market capitalization nearing $94 billion.

Matthew Dibb, Chief Investment Officer of cryptocurrency asset management firm Astronaut Capital, believes that MicroStrategy's addition to the Nasdaq 100 will create a virtuous cycle: funds tracking the index will passively buy MicroStrategy stock, pushing up its price; and MicroStrategy can continue to increase its Bitcoin holdings by issuing bonds or stocks, further consolidating its position and attracting more investor attention, thereby driving the stock price up further.

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He said: "This decision was somewhat unexpected, but the excitement has not been dampened; many believe this could be the start of a capital cycle that may push up Bitcoin's spot price."

According to data from the past eight years, since 2015, Bitcoin has seen six instances of rising in December, with increases of at least 8%, peaking at 46% (excluding 2020).

This year's 'Christmas rally' seems to have started early. The so-called 'Christmas rally' refers to a wave of increases in U.S. stocks during the last week of December and the first few days of January, usually driven by holiday optimism, increased holiday spending, and year-end adjustments by investors.

IG analyst Tony Sycamore told CNBC: "We are currently in an uncertain range, with the market generally expecting Bitcoin to rise to $110,000. Many originally thought the market would pull back, but so far, that has not happened."

Mena Theodorou, co-founder of Coinstash, believes: "If Bitcoin stabilizes above $100,000, coupled with Ethereum's upward momentum and significant ETF inflows, it may signal a rebound for altcoins as well. With the Trump administration's support for cryptocurrencies, easing inflation, and the prospect of interest rate cuts by the Federal Reserve, there are plenty of factors supporting the development of the crypto market now."

Meanwhile, some traders aim for Bitcoin to break $120,000 within the next year.

Jeff Mei, COO of cryptocurrency exchange BTSE, stated on Telegram: "We believe Bitcoin still has significant upside potential, and by the end of 2025, the price is likely to reach $125,000. While some believe the recent month's upward space has been absorbed, we think the upward trend is just getting started. Institutional investors, family offices, and high-net-worth individuals need time to adjust their portfolios to allocate 1%-3% to Bitcoin and cryptocurrencies. Once this type of capital begins to flow in, the market's cryptocurrency inflow could surge dramatically. Considering Trump's pro-cryptocurrency policies, ongoing rate cuts, and China's stimulus measures, there are still many bullish reasons in the market."