Bitcoin (BTC) Rallies Past $100,000 as Institutional Investment Returns and Exchange Supply Dwindles

Bitcoin exchange-traded funds (ETFs) saw $908.1 million in net inflows on Friday, which is the highest since mid-December.

Bitcoin price hit an intraday high of $101,184 on Monday, continuing its rally after recovering from a dip below $92,000 during the holiday season.

This marks a nearly 11% gain in just one week, and some are predicting that Bitcoin could reach $200,000 this year.

One key factor driving this optimism is the institutional investment in Bitcoin. Recent data from Farside Investors shows that Bitcoin exchange-traded funds (ETFs) saw a net inflow of $908.1 million on Friday, which is the highest since mid-December. This indicates that large investors are returning to the market, which is丙 pushing up the price of Bitcoin.

Another important factor is the decreasing supply of Bitcoin on exchanges. On-chain data from Santiment reveals that more Bitcoin is being held off exchanges, while the supply on major platforms like Coinbase and Binance is shrinking. Analysts at 10X Research noted, “Significant exchange withdrawals of BTC signal that holders do not intend to sell,” which they view as a bullish sign for the cryptocurrency.

Looking ahead, several key events could influence Bitcoin’s price further. On January 15, the U.S. Bureau of Labor Statistics will release its Consumer Price Index (CPI), which measures inflation.

Analysts believe that a favorable inflation report could lead to more investors turning to Bitcoin as a hedge against inflation. “A favorable inflation print could reignite optimism, fueling a rally into the Trump inauguration on January 20,” analysts from 10X Research explained.

Bitcoin’s recent rally is also being influenced by the upcoming inauguration of President-elect Donald Trump set for January 20. Traders are of the view that his pro-crypto stance will bring about favorable policy to the space, there giving optimism a push for bitcoin.

In the technical view, Bitcoin has also broken through key resistance levels. According to trader Rekt Capital, Bitcoin will need to stay above the $101,000 range for its upward momentum to continue.

“Bitcoin will need to Daily Close and/or retest the $101k Range High to break, just like in early December 2024” he stated.

Also Read: Bitcoin’s Path to $105K Depends on Boost in Trading Volume