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bitcoin (btc) has surpassed the $100,000 threshold for the first time in two weeks, supported by revived momentum following Congress' long-awaited confirmation of Donald Trump's US election victory this week.
According to data from Bloomberg, the market-leading cryptocurrency rose more than 4% in the 24-hour period to reach $102,500 on Monday, recording a weekly increase of 11%, its highest increase since November 24.
bitcoin rally resumes: surpasses $100,000
btc's performance in 2024 saw a slowdown in late December as investors attempted to lock in their profits. However, the enthusiasm for a pro-crypto The Trump administration has revived interest, driving bitcoin to a record high of $108,000.
As Congress prepares to meet to certify Trump's victory, market sentiment appears optimistic. Khushboo Khullar, a Lightning Ventures venture partner who invests in bitcoin-related companies, <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-01-06/bitcoin–btc-approaches-100-000-as-congress-set-to-certify-trump-win?utm_content=crypto&utm_campaign=socialflow-organic&utm_source=twitter&utm_medium=social” target=”_blank” rel=”nofollow”>fixed, “A super cycle is expected in 2025 due to the Trump administration's regulatory changes.”
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A notable increase in investment in bitcoin exchange-traded funds (ETFs) has also fueled this momentum. On Friday, investors funneled a net $908 million into US bitcoin ETFs.
This marked the fifth largest influx since its launch in January 2024, following a historic net outflow of $680 million on December 19.
Another positive indicator for bitcoin traders is the bitcoin Coinbase Premium bounce, which measures the price movement between bitcoin on Coinbase and Binance.
Following its lowest point since Sam Bankman-Fried's FTX crash in 2022, the premium has recovered, indicating growing demand for bitcoin among US investors.
Joe McCann, CEO of Ametric, a Miami-based crypto hedge fund, noted that ETF issuers primarily trade on Coinbase, implying that demand for ETFs can affect premium or discount rates.
Key Support Levels Under Scrutiny
As the market looks to 2025, highlights Bloomberg that bitcoin's path will largely depend on Trump's dedication to his cryptocurrency-related promises, which span a national reserve of bitcoin.
However, doubts remain about the longevity of the current rally. A recent MLIV Pulse survey revealed that 39% of participants considered bitcoin to be the investment most likely to lose in 2025, the highest proportion of all options.
Regarding technical analysis, market expert Morecryptoonl<a target="_blank" href="https://x.com/Morecryptoonl/status/1876279083782336994″ target=”_blank” rel=”nofollow”> pointed out that bitcoin has formed a more distinctive five-wave pattern, with a bearish outcome still feasible if specific support levels are violated.
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Currently, the second wave is required to maintain support, while the first wave is technically over but is anticipated to reach a low of $100,800. Crucial support zones Between $93,144 and $96,554 have been identified, which could be examined after the first wave validates its peak.
As for bitcoin ETFs, Glassnode claims that the buying trend remains strong due to seasonal influences. With Inauguration Day approaching, the market analysis firm <a target="_blank" href="https://x.com/Negentropic_/status/1876306417382220047″ target=”_blank” rel=”nofollow”>wait increased buying activity by traditional financial investors, which could further impact bitcoin price movements.
At the time of writing, btc has pulled back towards the $101,888 level but is still making significant gains on all time frames.
Featured image of DALL-E, chart from TradingView.com
