The crypto markets are abuzz with anticipation as Bitcoin (BTC) surged above the psychologically significant $105,000 level on Friday, notching a fresh high for 2025. The rally comes just days before Donald Trump is set to be sworn in as the 47th President of the United States, with investors eagerly awaiting his administration’s stance on digital assets.
After briefly dipping below $90,000 earlier in the week amidst a broader market pullback, Bitcoin has staged an impressive recovery, rising over 17% to break out of its multi-week downtrend. The leading cryptocurrency is now within striking distance of its all-time high of $108,000, set back in December.
Investors Bet Big on Bitcoin ETFs
The bullish sentiment is evident in the strong inflows seen by spot Bitcoin ETFs over the past two days. According to data from Farside Investors, these ETFs have attracted a combined $1.381 billion in net inflows, reversing a four-day streak of outflows. Ether (ETH) spot ETFs also saw their strongest day in over a month, with $166 million in inflows.
BlackRock’s iShares Bitcoin Trust ETF (IBIT) was particularly active, booking nearly $1 billion in trading volume within the first hour of Friday’s session. This placed it fourth among all U.S. ETFs by volume, surpassing Vanguard’s S&P 500 ETF (VOO) despite having only a tenth of its assets under management.
Trump’s Crypto Agenda in Focus
All eyes are now on Donald Trump as he prepares to take office on Monday. The incoming president made crypto a key focus of his campaign, promising to position the U.S. as a leader in the space. This marks a significant shift from the regulatory crackdowns and enforcement actions that characterized much of the past few years.
As we close out the final week of the Biden presidency, the technical picture remains very constructive for BTC. The only thing that could cause a large corrective move lower is if Trump fails to act on his plans to loosen regulatory policy around digital assets and to start building up BTC treasury holdings.
– John Glover, Chief Investment Officer at crypto lender Ledn
According to a Bloomberg report on Thursday, one of Trump’s first moves as president could be an executive order elevating digital assets to a “national priority.” The order would also create an advisory council comprised of industry members to provide policy recommendations.
On the campaign trail, Trump floated the idea of creating a national stockpile of Bitcoin, similar to the strategic petroleum reserve. Polymarket traders are now pricing in a 38% probability that he will make good on this promise within his first 100 days in office.
Crypto Stocks Ride the Wave
The rising tide in the crypto markets is lifting all boats, with several crypto-related stocks posting strong gains on Friday:
- MicroStrategy (MSTR), the largest corporate holder of Bitcoin, rose 7%
- Crypto exchange giant Coinbase (COIN) advanced 4.5%
- Bitcoin miner MARA Holdings led the pack, surging 13%
Key Levels to Watch
With Bitcoin now comfortably above $105,000, traders are eyeing the December all-time high of $108,000 as the next key resistance level. A clean break above this could open the door for an extended rally, according to Ledn’s John Glover.
Using Elliott Wave theory, Glover projects Bitcoin hitting $128,000 in the coming months as it completes the larger Wave 3 of its uptrend. Under this model, market trends typically unfold in five waves – three primary waves in the direction of the trend and two corrective waves.
“There remains a slim possibility of revisiting the recent lows at $90,000,” Glover notes. “However, this scenario is becoming increasingly unlikely.”
While the technical picture looks promising, the key fundamental catalyst in the near-term remains the changing of the guard in Washington. If Trump delivers on his pro-crypto campaign pledges, it could add more fuel to Bitcoin’s rally. Conversely, any disappointment on this front may take some of the wind out of the market’s sails.
Regardless of short-term political developments, however, the long-term outlook for Bitcoin and the broader crypto ecosystem remains as bright as ever. With increasing institutional adoption, improving regulatory clarity, and the rapid pace of innovation in areas like DeFi, NFTs, and Web3, the future of finance is looking more and more digital by the day.
