Bitcoin rises again above $100,000
Key takeaways
- Bitcoin rose above $100,000 on Monday for the first time since December 19.
- Bitcoin has gained nearly 50% since the presidential election amid optimism that the incoming Trump administration and a pro-cryptocurrency Congress will adopt policies that benefit the digital currency.
- Spot Bitcoin ETFs saw strong inflows of over $900 million on Friday, and Bitcoin price action suggests we could see positive numbers on Monday as well.
Bitcoin prices rose above $100,000 on Monday for the first time since December 19, after weeks of volatility.
In the weeks following the US presidential election, Bitcoin rose more than 50%, reaching an all-time high of about $108,000 in mid-December, amid investor optimism that the incoming Trump administration will adopt policies that support the cryptocurrency market. The rally stalled during the holiday season, with Bitcoin falling to around $92,000.
The digital currency was trading at around $102,000 early Monday afternoon, up from an intraday low of around $98,000, with little news that might spark the shift.
What pushed Bitcoin above $100,000 again?
One potential factor to consider is the reversal of flows for Bitcoin exchange-traded funds (ETFs). After suffering with several days of Large outflowsSpot bitcoin ETFs recorded inflows of $908.1 million on Friday, according to data from Farside Investors. Starting on December 19, just days after Bitcoin surpassed $108,000, spot Bitcoin ETFs saw nearly $1.9 billion in outflows.
When investors put money into Bitcoin ETFs, these products buy Bitcoin and this demand causes Bitcoin prices to rise. Massive demand from spot Bitcoin ETFs Led the rise in Bitcoin prices Early last year and could do it again.
“I was expecting a rough patch for [bitcoin] “As ETFs fell below $100K (late for a break) but no, they rose again by nearly $1B on Friday, lifting the 1W to a net positive,” noted Eric Balchunas, Bloomberg ETFs analyst. In X.
Also worth noting: MicroStrategy (MSTR) bought more Bitcoin for the ninth week in a row, even though at $101 million This latest purchase is lower than seen in previous weeks. This alone could not have led to such a large reaction in the price of Bitcoin, even if MicroStrategy was considered a significant reaction. Bitcoin proxy.
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