Bitcoin (BTC), the leading cryptocurrency in the market, has once again crossed the significant $100,000 mark after a two-week hiatus. This resurgence is backed by renewed market momentum following the anticipated confirmation of Donald Trump’s victory in the US election by Congress this week.
Bitcoin’s Remarkable Rally: Breaking Past $100,000
In early 2024, Bitcoin experienced a slowdown as investors sought to secure their profits. However, the prospect of a pro-crypto administration under Trump has reignited interest in Bitcoin, driving it to a record high of $108,000. As Congress gears up to officially confirm Trump’s election win, the market sentiment remains optimistic.
Khushboo Khullar, a venture partner at Lightning Ventures, which invests in Bitcoin-related ventures, noted, “We anticipate a super cycle in 2025 due to regulatory shifts under the Trump administration.”
Investors Flock to Bitcoin ETFs
The surge in Bitcoin has been further bolstered by a significant influx of investments into Bitcoin exchange-traded funds (ETFs). On Friday alone, investors poured a net total of $908 million into US Bitcoin ETFs, marking the fifth largest inflow since their inception in January 2024. This comes after a record net outflow of $680 million on December 19.
Another encouraging sign for Bitcoin traders is the recovery of the Bitcoin Coinbase Premium, which tracks the price difference between Bitcoin on Coinbase and Binance. After hitting its lowest point since the collapse of Sam Bankman-Fried’s FTX in 2022, the premium has rebounded, highlighting a surge in Bitcoin demand among US investors.
Joe McCann, CEO of Asymmetric, a crypto hedge fund based in Miami, emphasized that ETF issuers primarily conduct transactions with Coinbase. This indicates that ETF demand could influence premium and discount rates.
Critical Support Levels Examined
Looking ahead to 2025, Bloomberg underscores that Bitcoin’s trajectory will heavily depend on Trump’s commitment to his crypto-related promises, including the establishment of a national Bitcoin reserve. Nevertheless, questions remain about the sustainability of the current rally. A recent MLIV Pulse survey found that 39% of participants deemed Bitcoin the investment most likely to falter in 2025, the highest percentage among all options.
From a technical analysis perspective, market analyst Morecryptoonl observed that Bitcoin has developed a clearer five-wave pattern. A bearish outcome remains possible if certain support levels are breached. Currently, wave two needs to hold support, while wave one has technically concluded but is projected to reach at least $100,800.
Key support zones have been identified between $93,144 and $96,554, which may be tested once wave one confirms its peak. Regarding Bitcoin ETFs, Glassnode reports that the buying trend remains strong, influenced by seasonal factors. With Inauguration Day on the horizon, the market analysis firm anticipates increased purchasing activity from traditional finance investors, potentially impacting Bitcoin’s price further.
As of the latest update, BTC has slightly retreated to $101,888 but continues to show substantial gains across all time frames.
