The crypto market is abuzz as Bitcoin (BTC) closes in on the elusive $100,000 mark, nearly 15 years after the asset’s genesis block. BTC prices surged past $99,200 on Friday before settling above $99,000 in the Asian afternoon hours. This rally has propelled the total crypto market capitalization to a record high of $3.4 trillion, with Bitcoin accounting for over 56% of the total.
The recent BTC strength is sparking a rotation into other major tokens ahead of the weekend, fueled by rekindled optimism about an incoming crypto-friendly Trump administration set to take office in January. Ethereum (ETH) has jumped nearly 9% in the past 24 hours, boosting various indexes tracking the broader decentralized finance (DeFi) sector by at least 8%. Notable Ethereum-based memecoins like Mog (MOG) and Pepe (PEPE) have soared as much as 27% on their tendency to act as higher beta plays on ETH growth.
Institutional Demand Drives Bitcoin ETF Inflows
The bullish sentiment is being fueled in part by substantial inflows into US-based spot Bitcoin ETFs. According to industry data, these ETFs recorded over $1 billion in net inflows, led by BlackRock’s IBIT with $600 million in purchases. Fidelity’s FBTC registered more than $300 million in inflows with zero outflows from any of the eleven ETFs.
Altcoins Ride Bitcoin’s Coattails
Solana (SOL) has risen 8%, establishing new highs above $260 amid its own US-based ETF registrations and continued use of the blockchain for speculative trading. Cardano’s ADA token is up 12%, the second-largest gainer among majors after XRP.
Ripple’s XRP token has skyrocketed 25%, leading growth among top tokens, as SEC Chair Gary Gensler announced he would be stepping down in January, removing roadblocks for US company-affiliated tokens. The impending changing of the guard at the securities regulator is seen as a positive development for the crypto industry.
Traders Bet on Continued Bitcoin Strength
Market participants expect BTC prices to remain robust in the near term. In a Friday note, traders from QCP Capital stated:
“We continue to see strong demand for BTC alongside further easing of monetary policy by global central banks, BTC prices are likely to remain supported as we head into year-end. Throughout the week, our desk noticed aggressive demand in the March and June calls, signaling investors’ bullish longer-term sentiment heading into next year.”
Deribit’s BTC futures contracts expiring in March, June, and September 2025 are trading above $100,000. The $100,000 strike BTC call option now boasts an open interest exceeding $2 billion, indicating traders’ expectations for upward movement.
Potential for Short-Term Pullback
However, some analysts caution that a short-term retracement from the $100,000 level may be in the cards, as several CoinDesk analyses noted earlier in the week. Profit-taking and sell pressure from miners could temporarily cap BTC’s upside.
Regardless, the overall crypto market sentiment remains decidedly bullish as investors look ahead to a new era of regulatory clarity and mainstream adoption under a Bitcoin-friendly U.S. administration. With major tokens like ETH, XRP, and SOL following in Bitcoin’s footsteps, the stage appears set for the bulls to keep running in the months ahead.
