Bitcoin (BTC) recently surged past the $100,000 mark, reaching approximately $102,000, marking its highest level since December 19.
This increase of 2.5% within an hour coincided with the opening of traditional U.S. markets and represented a 4.3% rise over the previous 24 hours. Following a significant rally post-Donald Trump’s election victory, the crypto market experienced a correction at the end of 2024. BTC hit a local low of around $91,000 on December 30, a nearly 15% decline from its peak.
As the new year commenced, institutional demand for Bitcoin appeared to be returning. MicroStrategy announced the acquisition of an additional 1,020 BTC, while KULR Technology Group invested $21 million in BTC, doubling its holdings.
Notably, spot BTC exchange-traded funds (ETFs) saw inflows of $908 million, indicating renewed interest. Analysts observed that the recent price increases were primarily driven by spot buying rather than leverage, as open interest in BTC futures remained low.
Experts predict a rebound in crypto prices as the market adjusts to the new year, although caution is advised due to potential volatility. Concerns regarding the Federal Reserve’s stance on inflation could impact market sentiment.
While some optimism exists for the asset class, analysts suggest that the bullish momentum seen in late 2024 may not be replicated in the immediate future, urging a balanced perspective as the market navigates upcoming economic developments.
