What to Know:
- The asset is up 10% in the past week, reversing nearly all losses from early December after retaking the $102,000 level late Monday.
- The surge comes as spot Bitcoin exchange-traded funds (ETFs) offered in the U.S. raked in $987 million on Monday, their highest since Nov. 21, according to data from SoSoValue.
- Anticipation in the market is expected to stay low until the U.S. Nonfarm payrolls (NFP) report on Friday, which some believe could spark a new trading year.
A return to markets after the holidays and anticipation surrounding Donald Trump’s inauguration as U.S. president is fueling bullish sentiment for Bitcoin and the broader crypto market.
Bitcoin has recently surged to reclaim levels above $102,000, reversing losses experienced in December. The price fell from nearly $109,000 in mid-December to around $92,000 before the recent recovery.
The interest in U.S.-listed Bitcoin ETFs reached record inflows, with Fidelity’s FBTC bringing in $370 million, BlackRock’s IBIT bringing in $209 million, and Ark Invest’s ARKB recording $71 million. All these figures contributed to the strongest inflow day for ETFs in several weeks.
Trump’s anticipated policies on crypto are thought to have rekindled positive sentiment among traders, which often correlates with rising Bitcoin prices.
“We believe that the demand for Bitcoin is manifesting itself after a downbeat Fed outlook in late December put the brakes on a Santa Claus rally” - Jeff Mei, COO at BTSE.
Expected bullish growth trends are indicated by technical analysis, with some traders eyeing a target price of $109,000. Alex Kuptsikevich, FxPro’s chief market analyst, states:
“So far, the technical picture looks like a classic correction completion with a resumption of the growth from the Fibonacci retracement level of 61.8% of the rally since the beginning of November.”
Market fluctuations may remain moderate until the U.S. NFP report's release, which is seen by many as pivotal for the new trading cycle.
