Bitcoin Rally Resumes: Surges Past $100,000

BTC's performance in 2024 encountered a deceleration in late December as investors aimed to secure their gains. Nevertheless, enthusiasm for a pro-crypto government under Trump has rekindled interest, propelling Bitcoin to a record peak of $108,000.

Bitcoin (BTC) price crossed the $100,000 threshold for the first time in two weeks, as a renewed wave of optimism hit markets ahead of the expected confirmation of Donald Trump’s US election win by Congress this week.

According to data from Bloomberg, the world’s leading cryptocurrency rose over 4% in 24 hours to hit $102,500 on Monday, and was up 11% on the week – its best seven-day performance since November 24.

Bitcoin price rally resumes, surging past $100,000 again

BTC price had slowed its 2024 rally in late December, as traders largely opted to secure their gains. However, enthusiasm for a pro-crypto government under Trump appeared to be boosting sentiment once more, taking Bitcoin to within striking distance of its record peak of $108,000.

Markets were upbeat as Congress prepared to meet to certify Trump’s win, with Khushboo Khullar – a venture partner at Lightning Ventures, which invests in Bitcoin-related companies – stating that “a super cycle in 2025 is expected due to regulatory changes from the Trump administration.”

Another positive indicator for Bitcoin traders was a rebound in the Bitcoin Coinbase Premium, which measures the price difference between Bitcoin on Coinbase and Binance.

The premium has recovered after hitting its lowest levels since Sam Bankman-Fried’s FTX exchange collapsed in 2022, suggesting a rising demand for Bitcoin from US investors.

However, the premium turned negative in December, as the Grayscale Bitcoin Trust (GBTC) began trading at a discount to spot Bitcoin prices for the first time ever.

According to Joe McCann – the CEO of Asymmetric, a crypto hedge fund in Miami – ETF issuers primarily trade on Coinbase, which suggests that demand for the ETFs could be affecting the premium or discount rates.

Bitcoin price support levels eyed

As the market looks ahead to 2025, Bloomberg noted that the path of Bitcoin price will depend heavily on Trump’s dedication to his crypto-related pledges, which include a national Bitcoin reserve.

However, there are doubts over the sustainability of the ongoing rally, with a recent MLIV Pulse survey revealing that 39% of participants saw Bitcoin as the investment most likely to become a loser in 2025, the highest proportion of any choice.

On the technical analysis front, market commentator Morecryptoonl noted that Bitcoin has formed a more complete five-wave pattern, with a bearish scenario still possible if specific support levels are violated.

Currently, wave two is holding support, while wave one is technically complete but saw a minimum target of $100,800. Once wave one confirms its peak, key support Fib levels are seen around $93,144 to $96,554, which could be tested next.

When it comes to Bitcoin ETFs, Glassnode said the buying trend was still strong, largely due to the seasonality.

With Inauguration Day approaching, the market analysis firm anticipates more buying from traditional finance investors, which could continue to influence Bitcoin price.

At the time of writing, BTC price had slipped back towards the $101,888 level but was still making significant gains on all time frames.