Bitcoin rose as much as 4.1% to $102,504 on Monday. As of Sunday it had posted a weekly gain of 5.66%, its largest since Nov. 24, according to data compiled by Bloomberg.
Bitcoin’s record-breaking run in 2024 ran out of steam in late December as investors looked to book profits. Optimism that a pro-crypto White House under Donald Trump will instigate a supportive regime in the US had earlier helped lift the token to an all-time high of $108,315.
The momentum shift comes after investors poured a net $908 million into a crop of US Bitcoin exchange-traded funds on Friday, the fifth biggest inflow for the group since their launch in Jan. 2024, according to data compiled by Bloomberg. Those funds posted a record net outflow of $680 million on Dec. 19.
“The ETF issuers almost all trade and custody with Coinbase so they tend to push the premium or discount based on demand for the ETF,” said Joe McCann, founder and chief executive officer of Miami-based crypto hedge fund Asymmetric.
Software company turned Bitcoin proxy, MicroStrategy Inc. has also been driving Bitcoin purchases. The Bitcoin treasury company bought $101 million of the cryptocurrency last week, marking its ninth week of consecutive purchases, according to a US Securities and Exchange filing on Monday. But this marks a large decline from the over $1 billion in purchases it made in weeks in November and December.
Similarly bullish for Bitcoin traders is the recovery of the Bitcoin Coinbase Premium, a metric that tracks the difference between the price of the token on Coinbase Global Inc., a leading US digital-assets exchange, and global crypto bourse Binance Holdings Ltd.
Bitcoin’s prospects in 2025 will hinge partly on to what extent Trump follows through on his crypto pledges, which include establishing a national stockpile of Bitcoin. Some are doubtful that the rally can be sustained. In a Jan. 6 MLIV Pulse survey that asked which winning investments of 2024 are most likely to turn into losers in 2025, 39% of respondents chose Bitcoin, giving it the largest share of the vote.
