Good day everyone,

I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent news of Bitcoin breaching the $100,000 mark once again, and where it can go from here.

Bitcoin Reaches $100k Again

Bitcoin managed to rise above the $100,000 mark once again, reaching $102,000 before dropping back down in the mid $90k's. Its early 2025 recovery has seen it reach the six digit figure for the first time since December 19, 2024, and shows a strong start to the year for crypto. According to Coinglass data there was also a nearly 100% increase in options trade volume in the past 24 hours, which helped to drive the price of Bitcoin upwards.

With so much happening in the political world, it has likely also had a big impact on the price of crypto. President-elect Donald Trump’s inauguration ceremony is two weeks away and many are anticipating his pro-crypto policies throughout his Presidency will bring about positive change for the crypto space. Edul Patel, CEO of Mudrex, noted:

"BTC spot ETFs saw net inflows of $759 million, building on the $900 million inflows from the previous session, taking Bitcoin into six-figure territory. Additionally, the anticipation of pro-crypto candidate Pierre Poilievre becoming Canada’s next prime minister, replacing Justin Trudeau strengthened the market sentiment increasing broader market activity. Currently trading at $102,000, Bitcoin faces its next resistance at $104,700 with support moving up to $98,500."

Along with all of this it is important to note the return of institutional capital inflow and a dwindling exchange supply of Bitcoin, which has also helped to spark the positive moves for Bitcoin. The final two weeks of December had seen a decline in institutional investment, but this investment has reignited once again in January. Congress has also officially certified the election results for all 50 states and the District of Columbia during a formal ceremony on Monday, as Vice President Kamala Harris led the joint session of the House and Senate in her role as president of the Senate.

Bitcoin recorded $908.1 million in net inflows across its US-based Spot ETFs last Friday, which was the largest inflow volume recorded since mid-December 2024.

There has also been an increase in the number of Bitcoin held off of exchanges, according to data from on-chain intelligence tracker Santiment. Since mid-November there has been a clear divergence between Bitcoin supply on exchanges and the amount held off of it, indicating that Bitcoin accumulation off-exchange platforms and a reduction in selling pressure on exchanges. This shows a bullish sentiment for additional gains in Bitcoin in the short term. 

Some analysts at 10X Research have highlighted the significance of this, noting that the decline of Bitcoin supply on exchanges signals that holders do not intend to sell. Their report, titled “Our Bitcoin/Crypto Game Plan for January” was published last Monday and noted that “...only three platforms currently hold more than 150,000 Bitcoins. Coinbase leads with 717,000 Bitcoins, despite a 30-day outflow of 48,000. Binance follows with 572,000 and an outflow of 6,500, and Bitfinex follows with 361,000, which saw outflows of 27,000.”

The market cap of Bitcoin also managed to reach $2.015 trillion, as its dominance stood at 56.32%, according to CoinMarketCap. Other major altcoins did not fare as well, with Cardano, Avalanche, SUi, Chainlink, Toncoin, Shiba Inu, Stellar, and Polkadot all down by up to 2.5%. However, Ethereum, XRP, BNB, Dogecoin, and Tron were trading higher. 

The resistance zone of $102,800 could be retested soon, and it is felt the once Bitcoin moves above this it should garner support towards the all-time high of $108,353. Currently Bitcoin is testing its support zone of between $95,151 and $96,100 as part of a correction.

The chief market analyst at FxPro, Alex Kuptsikevich, noted that the short-term growth in the crypto market is transitioning into periods of consolidation. He noted that current technical indicators point to the end of a typical correction and that growth should be expected. 

Have a great day.

Peace. CryptoGod-1.

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