Bitcoin has once again captured the attention of financial markets. It is rapidly approaching $100,000 as it regains its momentum after Donald Trump won the US Election.
The cryptocurrency market has surged since Congress is set to confirm Trump’s victory. This was fueled by the optimism that a more crypto-friendly environment could be created in the United States.
Bitcoins’ bullish return
Bloomberg data shows that the original cryptocurrency rose by as much as 1.4% to $98,871 in Monday’s trading. It had a gain of 5.6% for the week ending Sunday. This was its biggest weekly increase since November 24th.
The surge is a major rebound from the record-breaking Bitcoin run of 2024, which lost momentum in December as investors booked profits.
A previous rally in 2017 was fueled by the belief that Trump’s pro-crypto White House would lead to a crypto-friendly regime within the US. This helped propel the token up to a record high of $108 315.
These bullish feelings are re-igniting now that Trump’s victory is set to be confirmed by Congress on Monday.
Positive Market Indicators
Khushboo Khullar is a venture partner with Lightning Ventures. Lightning Ventures invests in Bitcoin related firms.
Investor activity is also a major factor in this optimistic outlook. A net amount of $908 millions was invested into US Bitcoin Exchange-Traded Funds on Friday.
The inflow is the fifth-largest since they were launched in January 2024. This contrasts sharply with an outflow record of $680 millions on December 19
The recovery of Bitcoin Coinbase premium, which measures the difference in price between the tokens on Coinbase Global Inc. versus Binance Holdings Ltd. also indicates a stronger demand from investors.
The Coinbase Premium is a good indicator of the demand for it
Coinbase Premium, which had fallen to its lowest level since Sam Bankman Fried’s collapse in 2022 when FTX was a major player, has recovered since then, signaling renewed US investor interest.
Joe McCann is the founder and CEO of Miami’s Asymmetric crypto hedge fund. He explained that “the ETF issuers trade with Coinbase and have custody there, so they are inclined to offer a premium or discount depending on the demand for the ETF.”
The upward trend of Bitcoin is boosted by this dynamic.
Uncertainty persists despite rally
The current Bitcoin surge cannot be denied, but the prospects of Bitcoin 2025 are still uncertain. This is partly due to the fact that Trump has not followed through with his crypto promises, including establishing a stockpile national of Bitcoin.
Recent MLIV Pulse research indicates that investors are not convinced about the sustainability of this rally.
A survey asked respondents which investments that were successful in 2024 would be most likely lose money by 2025. 39% chose Bitcoin. This made it the investment most likely seen as being a possible loss.
Bitcoin traded at $99119 in London as of Monday morning 8:57 am.
This article Can Bitcoin maintain the rally? As updates are made, the Token may change as Trump’s era starts.
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