Bitcoin’s value has returned to six-figure territory in just a few days.
On Monday, the asset price surpassed $102,400. It hovered around $101,750 at 2 pm ET — up nearly 9% from a week ago.
Crypto currency is now a growing industry. “January effect” — a term alluding to the potential rise of stock prices during the year’s first month. CoinGlass data shows bitcoin saw price gains — albeit slight ones — during each of the month’s first five days. This hasn’t been the case since 2018.
BTC has reached a historic peak of $108k a few months after Trump won the election. It was then that there were what others called a “healthy” BTC dropped below $92,000 in December due to hawkish Fed sentiments, profit-taking and correction.
Rayhaneh Sharif Askary, Grayscale Product and Research Head noted that temporary pullbacks in bull markets were common. The FTSE/Grayscale Crypto Sectors Market Index fell 6% from its December high.
“However, strong demand from US-listed Bitcoin ETPs and treasuries like MicroStrategy’s may support bitcoin’s price,” She said, when asked what the forecast for January was.
The US bitcoin ETFs welcomed $908 million in net new assets on Friday — rebounding from a combined $940 million worth of outflows over the previous four trading days, Farside Investors data shows.
In 2024, 96% of Bitwise’s financial advisors received crypto-related questions from their clients. The findings are in accordance with the ongoing capital injection into crypto by wealth managers.
Sharif Akary’s mention of Treasury was incorrect. MicroStrategy purchased 1,070 BTC (on December 30-31) for about $100 million. The company’s BTC purchases in the past weeks were smaller, but it also revealed that they are targeting a capital raising of $2 billion via perpetual preferred stocks offerings.
Simon Gerovich, CEO of Metaplanet, just announced that his company will increase its BTC (currently 1,762 BTC), to 10,000 BTC by 2025. Then, there is KULR Tech Group which announced Monday that it purchased an additional $21,000,000 worth of bitcoin.
Trump’s inaugural is set to take place in January. The 119th Congress was sworn-in last week. Soon, the hearings to confirm the nominees of President-elect Trump will begin.
Sharif-Askary said that confirmation hearings and the subsequent signals about the speed and extent of the future crypto regulatory clarity could affect BTC prices throughout the month.
“Delays or restrictive policy announcements may dampen sentiment,” She said before adding: “Macro factors — including Federal Reserve signals on interest rates and market responses to a stronger US dollar — could also play a role.”
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