In a landmark moment for the cryptocurrency industry, Bitcoin (BTC) is now within striking distance of the psychological $100,000 level. The leading digital asset surged past $99,000 on Friday morning, nearly 15 years after its inception. This rally has propelled the total cryptocurrency market capitalization to a record high of $3.4 trillion.
The bullish sentiment is being fueled by several key factors, including renewed optimism about the incoming pro-crypto Trump administration set to take office in January. Traders are betting that the new administration’s policies will further bolster the already thriving digital asset space.
Institutional Demand Drives Bitcoin Higher
Institutional investors continue to pour money into Bitcoin, with spot BTC exchange-traded funds (ETFs) in the United States recording over $1 billion in net inflows. BlackRock’s IBIT led the charge, attracting $600 million in purchases, while Fidelity’s FBTC saw more than $300 million in inflows without any outflows from the eleven ETFs.
This strong institutional demand is not only pushing Bitcoin higher but also sparking a rotation into other major tokens ahead of the weekend. Ethereum (ETH), the second-largest cryptocurrency by market cap, has surged nearly 9% in the past 24 hours, lifting various decentralized finance (DeFi) indices by at least 8%.
Altcoins Ride Bitcoin’s Coattails
Ethereum-based memecoins like Mogul (MOG) and Pepe (PEPE) have soared as much as 27% in their tendency to act as high-beta bets on ETH’s growth. Solana (SOL) is up 8%, setting new highs above $260 amid ETF registrations in the U.S. and continued use of the blockchain for speculative trading.
Cardano (ADA) has gained 12%, the second-largest increase among major tokens after XRP. Ripple’s XRP token has skyrocketed 25%, leading the gains among top tokens, as SEC Chair Gary Gensler announced he would resign in January, removing headwinds for U.S.-based token issuers.
Traders Bet on Continued Strength
Market participants expect BTC prices to remain robust in the near term. In a Friday missive, traders at QCP Capital noted:
We continue to see strong demand for BTC alongside further monetary policy easing from global central banks, BTC prices are likely to remain supported as we head into year-end.
The desk observed aggressive demand in March and June call options throughout the week, signaling investors’ long-term bullish sentiment for the coming year. Deribit’s BTC futures expiring in March, June, and September 2025 are trading above $100,000, with the $100,000 strike call option now boasting an open interest exceeding $2 billion – a testament to traders’ upside expectations.
However, as highlighted by several CoinDesk analyses earlier in the week, a short-term pullback from the $100,000 level is foreseeable. Traders should remain vigilant and manage risk accordingly as Bitcoin navigates this key psychological barrier.
As the crypto market reaches new heights and anticipation builds for a crypto-friendly Trump administration, all eyes are on Bitcoin to lead the charge. With institutional demand surging and altcoins following suit, the stage is set for an exciting end to a momentous year in the digital asset space.
