Bitcoin’s recent price surge has ignited optimism within the crypto market, with BTC teasing the $100K mark before retracting to around $99.7K during mid-London trading on January 16. This dramatic rebound from previous lows has resulted in Bitcoin’s Fear and Greed Index reaching 75%, signaling strong market greed and diminishing fears of a crypto selloff.
Altcoins have mirrored Bitcoin’s bullish momentum, with Ripple Labs’ XRP leading the charge. As a result, the total cryptocurrency market capitalization has surpassed the market valuation of tech giant Apple Inc (NASDAQ: AAPL), signaling growing confidence in the broader crypto space.
The increase in volatility also led to significant liquidations, with more than $345 million wiped out from the leveraged market, largely affecting short traders. However, Bitcoin’s price recovery is primarily driven by an influx of demand from whale and institutional investors, particularly US spot BTC ETF issuers.
In recent market data, Fidelity’s FBTC led the charge with net cash inflows of $463 million, followed by Ark 21Shares Bitcoin ETF (ARKB) with $138 million, and BlackRock’s IBIT ETF with $31 million. Remarkably, all three issuers recorded cash inflows, marking the end of a four-day streak of outflows. This shift reflects the rising interest from institutional investors, who are showing increasing confidence in Bitcoin’s long-term prospects.
Furthermore, Bitcoin’s supply on centralized exchanges remains at a multi-year low of 2.2 million BTC, suggesting that investors are holding their assets in anticipation of further price gains.
The macroeconomic landscape also adds to Bitcoin’s bullish outlook. Ahead of the second inauguration of US President-elect Donald Trump, market sentiment is being shaped by proposals for a strategic Bitcoin reserve in Oklahoma and Texas, designed to hedge against global inflation. Trump’s plans for friendlier SEC rules and clearer token guidelines are further boosting market optimism.
#Bitcoin #BTC #BTCUSDT | #Altcoins #Crypto
— Alan Santana (@lamatrades1111) January 16, 2025
🅱️ What About A Short-Term Correction? Can Bitcoin Crash?
Some people are asking about a short-term correction, a pull-back and lower prices in the coming weeks and days. What do you say?
Absolutely! It is possible to see a… pic.twitter.com/6eV5CrV5Wm
As Bitcoin shows signs of breaking past the $100K barrier, analysts predict that a continued bullish trend could push the price to new all-time highs, potentially reaching $118,762 if momentum persists.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Bitcoin Faces Tough Resistance at $102K: Analysts Predict Rangebound Trading Ahead
About The Author
