Strong Bitcoin Price Uptrend
Bitcoin (BTC) reached a new high of $105,000 on Friday, exceeding its previous record in U.S. dollar terms, as anticipation grows for a crypto-friendly U.S. government ahead of Donald Trump’s inauguration on January 20.
BTC Surges 5.2%
BTC topped $105,000 during the U.S. session, surging 5.2% over the past 24 hours, with the CoinDesk 20 Index following suit. Of the 20 constituents, only NEAR and Litecoin’s (LTC) managed to keep pace with bitcoin’s gains, while Solana (SOL) and Ethereum’s (ETH) lagged with 3% advances. XRP posted a 4% decline, retreating from its record highs following a massive market-leading rally earlier this week.
Crypto-Related Stocks on the Rise
MicroStrategy (MSTR), the largest corporate BTC holder, saw a 7% increase, while Coinbase (COIN), the largest U.S. exchange, advanced 4.5%. MARA Holdings led gains among major bitcoin miners, with a 13% rise.
Uptrend in Motion
Since last week’s sell-off, bitcoin has bounced back 17% as investor anxiety over Wednesday’s U.S. CPI inflation report subsided. The surge also follows speculation about Donald Trump’s potential crypto actions following his inauguration.
Target Resistance at $108,000
Alex Thorn, head of research at Galaxy, said: "Now $108,000 is near-term target resistance." According to Thorn, many reasons exist to be bullish on bitcoin.
Strong ETF Flows
Spot bitcoin ETFs saw $1.381 billion net inflows over the past two days, reversing a four-day streak of outflows. Ether spot ETFs attracted $166 million in inflows, their strongest day in over a month.
Eye on Trump’s Inauguration
The most significant upcoming catalyst will be Trump’s inauguration ceremony on Monday. Crypto investors anticipate a shift from the previous regulatory crackdowns and enforcements, with Trump promising to position the U.S. as a leader in the crypto space, including creating a national stockpile of bitcoin.
Executive Order Anticipated
Bloomberg reported that Trump plans to sign an executive order elevating digital assets to a "national priority" and creating an advisory council of industry members for policy recommendations. Odds of the U.S. establishing a bitcoin reserve have increased, with Polymarket traders placing a 38% probability on Trump making it happen within the first 100 days of his presidency.
John Glover’s Wave Theory Analysis
According to wave theory, market trends unfold in five waves, with three of the waves representing the primary trend and the others serving as retracements. John Glover, chief investment officer at Ledn, said that bitcoin’s current uptrend is following its interim 5-wave pattern, completing its larger wave 3. Glover projects that bitcoin could hit $128,000 in the coming months, with the key resistance point being $108,000.
Conclusion
The cryptocurrency market has been riding a wave of optimism in anticipation of Donald Trump’s crypto-friendly policies and executive orders. The recent surge in bitcoin prices and ETF flows reinforces the momentum. As investors eye the potential upside, the possibility of a bitcoin reserve becoming a reality under the new administration grows.
FAQs
- What is the current price of Bitcoin (BTC)?
As of this writing, Bitcoin has reached a new high of $105,000.
- What are the reasons for Bitcoin’s recent surge?
Speculation about Donald Trump’s potential crypto actions and a shift from regulatory crackdowns, as well as a 17% bounce from last week’s sell-off.
- Are there any target resistance levels to watch for Bitcoin?
According to Alex Thorn, head of research at Galaxy, the near-term target resistance level is $108,000.
- Have there been any notable changes in ETF flows recently?
Yes, spot bitcoin ETFs have seen $1.381 billion net inflows over the past two days, while ether spot ETFs attracted $166 million in inflows.
- What are the expectations for Trump’s inauguration on Monday?
Crypto investors anticipate a shift from the previous regulatory approach and the possibility of an executive order elevating digital assets to a "national priority."
