Bitcoin has risen above $100,000, sparking a massive rally in the cryptocurrency market
- Bitcoin crossed the $100,000 mark, rising by 4.3% in the past 24 hours.
- Solana and Ethereum are also seeing significant price increases.
- Institutional buyouts, including MicroStrategy, fuel market recovery.
The price of Bitcoin rose to over $100,000 in early 2025 after a strong recovery phase in the market. Ethereum, Solana, and other top 20 cryptocurrencies also recorded positive returns. US markets opened broadly higher by 3.5% CoinDesk 20 All day long.
Bitcoin is reclaiming the $100,000 price level
Bitcoin rose to $102,000, the highest price since December 19. The cryptocurrency rose 2.5% within an hour with the opening of traditional American markets. The price rose by 4.3% in the last 24 hours, leading to a market recovery in early January.
the CoinDesk 20 Index which tracks the largest cryptocurrencies, followed Bitcoin’s bullish trend. Ethereum (ETH) price rose by 2.8%, bringing its price to $3,700. Meanwhile, Solana (SOL) stock rose 4.5%, surpassing $220 as the broader market continues to post positive gains.
2024 ended with a market correction after an impressive rally, especially after Donald Trump won the election. However, Bitcoin’s price fell 15% from a peak near $109,000 on December 17 to nearly the $91,000 level on December 30. Trading activity declined during the holiday season as traders took profits as prices fell.
High demand for Bitcoin
Demand for Bitcoin and other cryptocurrencies increased at the beginning of the new year. Institutional investors such as MicroStrategy and KULR Technology Group have increased their holdings of Bitcoin. MicroStrategy purchased an additional 1,020 bitcoins while KULR Technology Group purchased $21 million worth of bitcoin to double its bitcoin reserve.
Spot BTC ETFs registered a particle $908 million in flows on Friday indicating increased demand. However, open interest in Bitcoin futures has declined, especially on institutional platforms such as the Chicago Mercantile Exchange. Analysts say this decline shows that the recent increase in prices was driven by spot purchases rather than leverage.
Expert opinion for the Bitcoin market 2025
Analysts warned that volatility may increase in the near future even as demand increases. Wincent’s Paul Howard warned that price levels above $100,000 may be sustainable. He said there may be more price volatility in the coming weeks because volatility often increases at the beginning of the new year.
Cryptocurrency research firm 10x Research also expected a price rebound but warned of volatility at the end of January. The company expects heavy selling in the last week of the month due to the potential Federal Reserve policy Decisions. However, the company remains optimistic about a positive year for the entire cryptocurrency market.
Inflation remains a major concern for the cryptocurrency market, especially the Federal Reserve’s stance. Markus Thelen of 10X Research notes that the Fed may take some time to change policy even if inflation slows. He expected inflation to decline this year, but noted that the Fed may not change its stance immediately.
The market saw early optimism despite analysts stressing caution, especially after a massive bull run in late 2024. Investors should be wary of potential future volatility, especially due to external factors such as Federal Reserve policy.
The first quarter of 2025 will remain crucial in determining upward momentum or potential price corrections. Institutional influence may increase or decrease market volatility.
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