Bitcoin has soared past $102,700, marking its highest point in three weeks. After dropping below $93,000 just a week ago, the cryptocurrency has rebounded with a 9% weekly gain. This rally has reignited hopes of Bitcoin reaching its previous all-time high of $108,000.
Key Drivers of Bitcoin’s Surge
Institutional Investments
Major players like MicroStrategy and Metaplanet have fueled Bitcoin’s rise with recent purchases. On January 6, MicroStrategy added 1,070 BTC to its holdings for $101 million. Though smaller than past acquisitions, this move underscores their bullish outlook. The company now owns 447,470 BTC, acquired at an average price of $62,503.
Similarly, Japanese investment firm Metaplanet plans to quintuple its Bitcoin holdings to 10,000 BTC. Their recent purchase of 619.7 BTC on December 23 highlights their ongoing commitment to the cryptocurrency.
Bitcoin ETF Inflows
Spot Bitcoin ETFs have seen record-breaking inflows. On January 3, U.S. Bitcoin ETFs registered $908 million in inflows, followed by $978.6 million on January 6. Major firms like Fidelity, BlackRock, and ARK Investments lead the charge, signaling increased institutional confidence in Bitcoin’s potential.
Gemini Settlement with CFTC
Gemini’s recent $5 million settlement with the Commodity Futures Trading Commission (CFTC) over Bitcoin price manipulation claims has also brought stability. Though the lawsuit remains unresolved, it hasn’t deterred the ongoing market rally.
What’s Next for Bitcoin?
As Bitcoin climbs, its next major resistance lies at $105,000. If the cryptocurrency can hold above this level, it could edge closer to its all-time high of $108,384. With bullish momentum continuing, investors remain optimistic about sustained growth.
