Bitcoin (BTC) Price Back Above $100K, ETH and SOL Gain as Cryptocurrency Recovery Extends Early 2025

Bitcoin (Bitcoin) The price returned to six-figure territory as the largest cryptocurrency extended its early 2025 bounce on Monday.

Bitcoin advanced toward $100,000 earlier during the trading session, then broke sharply above the threshold, rising 2.5% in one hour as traditional US markets opened. It was trading at around $102,000 recently, its strongest level since December 19 and up 4.3% in the past 24 hours.

Broad market standard CoinDesk 20 It rose 3.5% over the same period, with all 20 major cryptocurrency companies generating positive returns. Ethereum ether (Ethereum) rose 2.8% to $3,700, while Solana shares rose Sol Advance 4.5% to above $220.

Bitcoin and the broader cryptocurrency market ended 2024 with a correction, paring some of the gains of the massive rally since Donald Trump’s election win as investors booked profits. Prices and trading volumes fell during the holiday lull, along with outflows from BTC and ETH exchange-traded funds. Bitcoin hit a local bottom near $91,000 on December 30, a roughly 15% pullback from its record highs.

Demand returns but leverage remains weak

As the first full business week of the year begins and traders return to their offices after the holiday season, headlines of companies buying Bitcoin continue. Accurate strategy Announce On Monday, it bought another 1,020 bitcoins, while Texas-based energy management company KULR Technology Group He added $21 million worth of Bitcoin to her treasury, doubling her holdings.

BTC ETFs opinion $908 million in inflows on Friday as a sign of returning demand. Meanwhile, open interest in Bitcoin futures is much lower than it was in mid-December in the institutional-focused CME market and on an aggregate basis, suggesting that the recent price rebound has been driven primarily by spot buying rather than leverage. As James Van Straaten pointed out. Senior Analyst at CoinDesk. Funding rates were also at neutral levels across the board, CoinGlass data shows, indicating no froth during the rally.

Fed risks

“Just as we have seen institutions adorn their balance sheets with an eye toward risk assets at the end of the year and de-risk them ahead of the holidays, we are expected to see price action and a recovery in demand especially as we head into what we expect to be a positive year,” said Paul Howard, Senior Director at FX Trading. “It’s for the asset class and the next US administration,” Crypto Wincent told CoinDesk in a Telegram message.

“My personal view is not to read too much into these levels [BTC over $100,000] “We can also expect increased volatility in the next two weeks,” Howard added.

Cryptocurrency analytics firm 10x Research also predicted a rebound in cryptocurrency prices in early January ahead of President-elect Trump’s inauguration in a report released on Monday, but warned of a heavy sell-off at the end of the month ahead of the Federal Reserve’s January meeting.

Falcons comments What Fed Chairman Jerome Powell said at the December meeting marked the beginning of a pullback for risk assets, and 10x Research noted that it will take some time for the Fed to reverse its stance even if inflation declines further in the coming months.

“The primary risk remains the Fed’s communications, especially if renewed inflation concerns emerge,” said Markus Thelen, founder of 10X Research. “We expect inflation to decline this year, although it may take some time for the Fed to formally recognize and respond to this shift.”

“While some enthusiasm is expected at the start of the new year, this is not the time for the same level of uptrend we saw from late January to March 2024 or late September to mid-December,” he added.