Bitcoin Jumps Back Above $100,000
Bitcoin prices rose above the $100,000 price level on Monday for the first time since Dec. 19, after weeks of volatility.
In the weeks after the U.S. presidential election, bitcoin surged over 50%, reaching a record high of about $108,000 in mid-December, driven by investor optimism over the Trump administration’s potential support for cryptocurrency. However, the rally lost momentum during the holiday season, with prices dipping to around $92,000. By early Monday afternoon, bitcoin had rebounded to approximately $102,000 from an intraday low of $98,000, despite a lack of major news behind the recovery.
KEYPOINTS:
- Bitcoin surpassed $100,000 on Monday, its highest level since December 19.
- Prices have jumped nearly 50% since the U.S. election, fueled by hopes that the Trump administration and pro-crypto lawmakers will support digital assets.
- The rally paused during the holidays, with bitcoin dipping to around $92,000 before rebounding.
- Spot bitcoin ETFs saw $908 million in inflows on Friday, reversing the trend of nearly $1.9 billion in outflows since December 19.
- ETF demand and renewed buying by MicroStrategy are contributing factors, though MicroStrategy’s $101 million purchase alone likely didn’t spark the surge.
- Analysts suggest ETF flows may once again drive bitcoin’s momentum, as seen in early 2024.
What Triggered Bitcoin Above $100K Again?
One possible factor behind the rebound is a reversal in flows for spot bitcoin exchange-traded funds (ETFs). After experiencing several days of significant outflows, spot bitcoin ETFs recorded $908.1 million in inflows on Friday, according to Farside Investors. Since Dec. 19, shortly after bitcoin surpassed $108,000, these ETFs had seen about $1.9 billion in outflows.
When investors pour money into spot bitcoin ETFs, the funds purchase bitcoin, increasing demand and driving up prices. This demand helped fuel last year’s bitcoin rally and may be playing a role again.
“I would have predicted a rough patch for the [bitcoin] ETFs given the drop below $100k (overdue for a breather) but no, they roared back with nearly $1b Friday, which lifted the 1W to positive net,” Bloomberg ETF analyst Eric Balchunas wrote on X.
Also worth noting, MicroStrategy (MSTR) bought more bitcoin for a ninth straight week. Although this week’s $101 million purchase was smaller than prior buys, it alone likely wasn’t enough to spark such a large price reaction—even if MicroStrategy is often viewed as a bitcoin proxy.