In a remarkable display of strength, Bitcoin’s price is inching tantalizingly close to the landmark $100,000 level, nearly a decade and a half after the groundbreaking digital asset first burst onto the scene. As BTC’s price soars above $99,200, the total cryptocurrency market capitalization has hit a record high of $3.4 trillion, largely driven by Bitcoin’s 2% jump. The pioneering cryptocurrency now accounts for over 56% of the entire digital asset market.
Institutional Demand Fuels Bitcoin’s Ascent
The surge in Bitcoin’s price is being underpinned by robust institutional demand, as evidenced by substantial inflows into U.S. spot BTC exchange-traded funds (ETFs). According to market data, these ETFs have collectively attracted over $1 billion in net inflows, with BlackRock’s IBIT leading the charge at $600 million in purchases. Fidelity’s FBTC is not far behind, registering more than $300 million in inflows without any outflows from either of the eleven ETFs currently available.
Altcoins Ride Bitcoin’s Coattails
As is often the case, Bitcoin’s strength is having a ripple effect across the altcoin market heading into the weekend. The bullish sentiment is being further bolstered by renewed optimism surrounding the incoming crypto-friendly Trump administration set to take office in January.
Ethereum (ETH), the second-largest cryptocurrency by market cap, has surged nearly 9% over the past 24 hours, propelling various indexes tracking the broader decentralized finance (DeFi) sector up by at least 8%. Popular Ethereum-based memecoins like mog (MOG) and PEPE (PEPE) have skyrocketed as much as 27%, often serving as high-beta bets on ETH’s growth prospects.
Solana and Cardano Join the Party
Not to be left behind, Solana’s native token SOL has climbed 8%, setting fresh all-time highs above $260 amidst a flurry of exchange-traded fund (ETF) filings in the U.S. and the blockchain’s continued popularity for speculative trading. Meanwhile, Cardano’s ADA token has jumped 12%, marking the second-largest gainer among major cryptocurrencies after XRP.
XRP Skyrockets as SEC Chief Announces Departure
In a stunning development, XRP has rocketed 25% higher, outpacing gains across major tokens, as SEC Chairman Gary Gensler announced his intention to step down from his position in January. Gensler’s impending departure is lifting a significant overhang for tokens associated with U.S. companies that have faced regulatory scrutiny under his tenure.
Traders Bet on Sustained Bitcoin Momentum
With Bitcoin’s impressive performance, traders are growing increasingly confident that the largest cryptocurrency’s strength will persist in the near term. Commenting on market dynamics, traders at QCP Capital noted in a Friday broadcast:
We continue to see strong demand for BTC alongside additional monetary policy easing by global central banks, BTC prices are likely to remain supported as we head into year-end.
The Singapore-based trading firm also highlighted aggressive demand for March and June call options on Deribit, suggesting investors are positioning for continued upside in the coming year. Bitcoin call options with a $100,000 strike price expiring in March, June, and September 2025 are now trading above the six-figure threshold, reflecting traders’ expectations of a move higher.
Analysts Warn of Potential Pullback
Despite the overwhelmingly bullish sentiment, some analysts caution that a short-term pullback from the $100,000 level could be in the cards, as previously reported by CoinDesk. However, with institutional demand showing no signs of abating and a potentially crypto-friendly administration waiting in the wings, any dips may be short-lived as investors look to capitalize on the historic opportunity presented by digital assets.
As Bitcoin continues to flirt with the psychologically significant $100,000 mark, all eyes will be on the king of cryptocurrencies to see if it can finally conquer this elusive milestone and cement its status as a mainstream investment vehicle. With the total crypto market cap already at record highs and no shortage of bullish catalysts on the horizon, it appears that the sky’s the limit for Bitcoin and the broader digital asset space.
