The world’s leading cryptocurrency, Bitcoin (BTC), is tantalizingly close to the momentous $100,000 milestone, with its price surging above $99,000 in early Friday trading. This comes nearly 15 years after the very first Bitcoin was mined, marking an incredible journey for the pioneering digital asset.
According to market data, Bitcoin’s price briefly peaked at $99,200 before pulling back slightly to around $98,600. However, it quickly regained ground to settle above the $99,000 level during the Asian trading hours. This latest surge has propelled the total crypto market capitalization to a record high of $3.4 trillion, a 4.5% increase over the past 24 hours, largely driven by Bitcoin’s 2% jump.
Strong Institutional Demand Fuels Bitcoin’s Rise
The recent price action has been underpinned by strong institutional demand, with data showing that U.S.-based Bitcoin spot ETFs have recorded over $1 billion in net inflows. Leading the charge is BlackRock’s IBIT fund, which saw a staggering $600 million in purchases. Fidelity’s FBTC fund also witnessed significant interest, with inflows exceeding $300 million and no reported outflows from any of the eleven ETFs currently available.
We continue to see high demand for BTC alongside further monetary policy easing by global central banks, likely keeping BTC prices supported heading into year-end.
– Traders at QCP Capital in a Friday broadcast
Altcoins Ride Bitcoin’s Coattails
As Bitcoin’s dominance grows, currently accounting for over 56% of the total crypto market cap, other major tokens are experiencing a rotation in the lead-up to the weekend. This bullish sentiment is bolstered by renewed optimism surrounding the incoming crypto-friendly Trump administration, set to take office in January.
- Ethereum (ETH) has surged nearly 9% in the past 24 hours, lifting various indexes tracking the broader decentralized finance (DeFi) sector by at least 8%.
- Solana (SOL) has risen 8%, hitting new highs above $260 amid ongoing ETF applications in the U.S. and continued use of the blockchain for speculative trading.
- Cardano’s ADA token has jumped 12%, marking the second-largest gain among major cryptocurrencies after XRP.
- XRP has skyrocketed 25%, leading the pack, as SEC Chairman Gary Gensler announced his resignation effective January, potentially removing obstacles for tokens associated with U.S. companies.
Short-Term Pullback Expected, Long-Term Bullish Bets Remain High
Despite the high demand and optimistic long-term bets, with futures and options pricing in a move above $100,000 by 2025, traders anticipate a short-term retracement near the psychological $100,000 level.
This week, our desk saw aggressive demand for March and June call options, signaling long-term bullish investor sentiment heading into next year.
– QCP Capital traders
Deribit’s BTC futures expiring in March, June, and September 2025 are trading above $100,000, while the BTC $100,000 call option now boasts an open interest exceeding $2 billion, reflecting traders’ expectations of an upward move.
However, as multiple CoinDesk analyses noted earlier this week, a short-term pullback from the $100,000 level can be expected. Nonetheless, the long-term outlook for Bitcoin remains incredibly bullish as institutional adoption continues to grow and regulatory clarity improves.
As Bitcoin inches closer to the elusive $100,000 mark, the entire crypto market is holding its breath, eagerly waiting to see if the king of cryptocurrencies can finally break through this key psychological barrier. With strong fundamentals, increasing mainstream acceptance, and a crypto-friendly political climate on the horizon, it seems like only a matter of time before Bitcoin achieves this historic milestone and cements its position as a legitimate asset class in the eyes of the world.
