As we just entered 2025, Bitcoin has once again broken through the $100,000 mark, and the market seems to be gradually warming up amidst volatility.
Around 10 PM on January 6, Bitcoin's price rose and broke through $100,000, currently hovering around $102,000. Ether also quickly rebounded and broke through $3,600. Positive news continues, with Bitcoin's daily line having closed in the green for seven consecutive days, and the market seems to be gradually becoming optimistic. What has happened in the market?
Bitcoin market data is looking good
The spot Bitcoin ETF data is one of the important reference indicators for observing the inflow of off-market funds. Looking back at December, according to SoSoValue data, there was a continuous positive inflow in the first half of the month, while the second half was less than satisfactory. Since entering January, the spot Bitcoin ETF has once again realized net inflows, currently its total net asset value has reached $111.46 billion, and the ETF net asset ratio (the proportion of market value compared to the total market value of Bitcoin) has reached 5.72%, with a historical cumulative net inflow of $35.91 billion.
Image source: SoSoValue
Various institutions are increasing their Bitcoin holdings
On January 3, according to MicroStrategy's official news, it will raise $2 billion in the first quarter through the issuance of preferred shares to buy more Bitcoin. This lays the foundation for increased buying pressure for Bitcoin. According to Bitwise CEO Hunter Horsley, "According to HODL15 Capital's statistical data, 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 campaign."
MicroStrategy has now purchased Bitcoin for nine consecutive weeks, and on January 6, it increased its holdings by 1,070 Bitcoins for about $101 million, with an average price of $94,004, bringing its total holdings to 44,7470 Bitcoins, valued at around $44.3 billion.
Image source: Foresight News
According to news from the Bitcoin mining company MARA Digital, it will continue to increase its Bitcoin holdings on the balance sheet in 2025, with its current holdings of about 44,000 Bitcoins, worth over $4 billion. The U.S. listed company KULR has currently increased its holdings to 213.43 Bitcoins, reaching a total of 430.61 Bitcoins.
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 also increased its holdings by 5 Bitcoins since the New Year, bringing its total to 6,009 Bitcoins, worth about $595 million. Major institutions around the world are increasingly adding to their Bitcoin holdings, and buying pressure for Bitcoin continues to grow.
The Trump concept meme coin is seeing increases as the altcoin sector continues to warm up.
Since Trump successfully campaigned in early November, the market has seen a continuous rise for a month. On January 7, the U.S. Congress officially confirmed Trump's election as president, with his inauguration imminent, and related crypto projects and tokens are once again gaining attention.
The Trump concept meme coin $TRUMP has been raised continuously for three days since January 4, with an increase of over 80%; meme coins like $MAGA and $TRUMPCOIN have also seen nearly 100% increases, but have retreated somewhat yesterday. However, its family project World Liberty Financial's holdings in tokens such as $LINK, $AAVE, $ENA, and $COW have not shown significant increases.
Trump's crypto-friendly attitude is a major factor in the market's recent optimism. However, according to Reuters, Angeles Investments' investment director 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 policies.
Image source: Alternative.me
Currently, the sentiment in the crypto market has entered a relatively optimistic state, and the altcoin sector is still continuously recovering. According to data from Alternative.me, the cryptocurrency fear and greed index has gradually risen above 70 since January, reaching 78 today, indicating that the market has turned into an "extremely greedy state."
Compared to the soaring Bitcoin, the altcoin sector has shown mixed results. In the 24-hour increase, the public chain sector $SOL has once again broken through 220 USDT to realize a gain, $AVAX has realized an increase of about 6%, while other public chains have stagnated in their rise. $SUI has fallen back to 5 USDT after reaching a new high, and $TON has oscillated around 5.7 USDT.
The Ethereum ecosystem, including DeFi, re-staking, L2, stablecoins, and other sectors, has also experienced short-term pullbacks, with $EIGEN experiencing a slight decline after three consecutive days of gains, $LDO down about 3%, and $ENA seeing a significant pullback of around 10%. $OP, $ARB, and others have also experienced slight declines after five consecutive days of gains.
The Tech Spring Festival CES is held, and the AI concept welcomes more positive news.
The "Tech Spring Festival" CES 2025 (International Consumer Electronics Show) will be held 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.
Against this backdrop, on January 6, U.S. stocks performed well, with the Dow Jones rising more than 380 points at its peak, the Nasdaq rising 2% before retreating, and the chip index rising over 4%. The "Tech Seven Sisters" all saw gains, with Meta in the metaverse rising 4.23%, NVIDIA rising 3.43%, Google A rising 2.65%, Amazon rising 1.53%, Microsoft rising 1.06%, Apple rising 0.67%, and Tesla rising 0.15%.
As NVIDIA CEO Jensen Huang is set to deliver the opening keynote on January 7, NVIDIA's stock has risen for three consecutive days, reaching new highs. According to market news, Huang may officially announce the new generation of GeForce RTX50 series graphics cards, including RTX5090, 5080, and 5060.
In the crypto market, AI application coins have surged, and AI meme coins are still in an upward trend. $WLD has a 24-hour increase of over 10%, $RENDER has an increase of 8%, and $IOTA has an increase of 6%. In the past 24 hours, except for $VIRTUAL, $ZEREBRO, $FARTCOIN, etc., which saw slight declines, the others have all realized gains. $SWARMS is approaching a market value of 500 million, achieving over 80% growth. $AI16Z reached 2.25 USDT, with a growth of over 25%. $GRIFFAIN, $ARC, etc., all increased by over 20%, and $AIXBT has also risen again 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% around 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 have achieved good returns. The 2025 Spring Festival falls on January 29, which is earlier than in previous years, making market performance worth looking forward to.
Ledn's investment director John Glover stated that Bitcoin may fall back to $89,000 and then rebound, reaching $125,000 by the end of the first quarter, and could challenge $160,000 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 pullback 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 pullback."
Bernstein analysts released ten predictions for the crypto industry in 2025, stating that "the crypto industry will enter an 'infinite era'. The Bitcoin price target for 2025 is $200,000, the stablecoin market size will exceed $500 billion, net inflows of funds for spot Bitcoin ETFs will exceed $70 billion, and the integration of crypto and artificial intelligence will deepen 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 related catalysts from Trump may not appear until after the inauguration on January 20."
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 pullback. He suggests that investors sell in the later part of the first quarter and wait for liquidity conditions to improve in the third quarter.
This article is reprinted with permission from: (Foresight News)
Original author: shaofaye123, Foresight News
"Big Brother is back! Bitcoin returns to 100,000, AI coins take off across the board, is a broad market rally coming?" This article was first published on "Crypto City"
