Bitcoin (BTC) is making headlines again, soaring past the $100,000 mark for the first time in two weeks. This surge comes as optimism rises around Donald Trump’s imminent decision regarding his regulatory reforms following his expected confirmation as the 2024 US election winner. According to Bloomberg, Bitcoin jumped over 4% in just 24 hours, reaching $102,500 on a Monday. This marks an impressive 11% increase, the highest since late November.
Bitcoin Rally Resumes: Surges Past $100,000
While Bitcoin’s momentum faced a slowdown as 2024 closed, investors pulling back to secure profits, enthusiasm for a pro-crypto government under Trump has reignited interest. This renewed hope propelled Bitcoin to an all-time high of $108,000. As Congress gears up to endorse Trump’s win, the overall market sentiment feels infectious.
Khushboo Khullar, a venture partner at Lightning Ventures, which invests in Bitcoin-related firms, expressed that a super cycle in 2025 seems likely as a result of the regulatory changes anticipated from the Trump administration.
In addition, there’s been a significant surge in investments directed towards Bitcoin exchange-traded funds (ETFs). Recent reports reveal that $908 million flowed into US Bitcoin ETFs on a single Friday, marking the fifth-largest inflow since they were introduced in January 2024. This follows a substantial outflow of $680 million just the previous month.
Another positive sign for Bitcoin enthusiasts is the resurrection of the Bitcoin Coinbase Premium, which measures the price differences between Bitcoin on Coinbase and Binance. After hitting a rock bottom in the aftermath of FTX’s collapse in 2022, the premium has seen a resurgence, hinting at rising demand among US investors. Joe McCann, CEO of Asymmetric, a crypto hedge fund based in Miami, noted that ETF issuers predominantly trade with Coinbase, suggesting a strong connection between ETF demand and this premium.
Key Support Levels Under Scrutiny
As eyes turn toward 2025, Bloomberg indicates that Bitcoin’s trajectory will heavily depend on Trump honoring his crypto-related pledges, including the establishment of a national Bitcoin reserve. Despite the excitement, concerns linger over the sustainability of this rally. A recent survey revealed that 39% of respondents viewed Bitcoin as the most likely asset to underperform in 2025 — the highest percentage among all options.
From a technical perspective, analyst Morecryptoonl highlighted the formation of a refined five-wave pattern for Bitcoin, with the risk of a bearish outcome if specific support levels fail to hold. Presently, wave two needs to maintain support, while the first wave appears complete, with expectations that it will consolidate above $100,800. Strategic support zones between $93,144 and $96,554 are under watch as the market validates wave one’s peak.
As for Bitcoin ETFs, Glassnode reported a persistent strong buying trend, attributed to seasonal factors. With Inauguration Day approaching, the analysis firm anticipates a surge in purchasing activity from traditional investors, likely influencing Bitcoin’s price upward.
At this moment, Bitcoin has slightly retracted, hovering around $101,888, though it remains significantly up across various time frames. Keep an eye on these developments, as they may set the stage for a thrilling 2025!
