Key Points
- Bitcoin (BTC) is targeting $112,000 due to increased demand from large-scale investors.
- The cryptocurrency’s price has surpassed $100,000 for the first time in 2025.
The certification of Donald Trump’s presidential election by the US Congress has led to an increase in cryptocurrency market activity, with Bitcoin leading the charge. The leading cryptocurrency has seen a 2.5% surge in the past 24 hours, reaching a daily peak of about $102,512 before settling to trade at approximately $101.8K at the time of writing.
As Bitcoin’s price crossed the $100K mark for the first time in 2025, fears of further correction have significantly reduced. Furthermore, Bitcoin’s fear and greed index has risen to around 78%, indicating extreme greed among cryptocurrency traders.
Technical Analysis of Bitcoin’s Price
From a technical standpoint, Bitcoin’s price has successfully broken through a crucial resistance level of around $99.3K, signalling the beginning of the next bullish wave. Moreover, the daily price of Bitcoin has consistently closed above the 50 Moving Average (MA), indicating that the bulls are in control.
Crypto analyst Captain Faibik suggests that Bitcoin’s price has successfully rebounded from the lower border of an ascending wedge formation, setting a midterm target of about $112K.
Factors Contributing to Bitcoin’s Price Rally
The recent surge of Bitcoin above $100K for the first time in 2025 is largely driven by increasing demand from large investors and strong fundamentals. According to on-chain data analysis by Coinglass, the supply of Bitcoin on centralized exchanges has decreased by more than 47.5k in the last week, hovering around 2.2 million at present.
The significant outflows of Bitcoin from CEXes can be attributed to increased demand from large investors and US spot BTC ETF issuers. On Monday, US spot BTC ETF issuers registered a net cash inflow of about $987 million, offsetting the cash outflows recorded during the Christmas 2024 period.
Fidelity’s FBTC led in net cash inflows on Monday with a total of about $370 million, closely followed by BlackRock’s IBIT with a net inflow of about $209 million. Notably, no US spot BTC ETF issuers, including Grayscale’s GBTC, registered a net cash outflow on Monday, indicating a rising demand from institutional investors.
On the same day, MicroStrategy Inc (NASDAQ: MSTR) purchased 1,070 Bitcoins, worth about $101 million, bringing their total holdings to 447,470 Bitcoins. More institutional investors are expected to follow suit after the Trump administration implements clearer crypto regulations.
Lastly, Bitcoin’s correlation with traditional stock indexes has remained positive in the past two months. With the rebound of the NASDAQ 100 and the S&P 500 indexes, Bitcoin’s price has also rallied in tandem.
