Bitcoin Traders Eye $109K as Trump Anticipation Builds, BTC ETFs Rake in Nearly $1B

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What to know:

  • The asset is up 10% in the past week, reversing nearly all losses from early December after retaking the $102,000 level late Monday.
  • The surge comes as spot bitcoin exchange-traded funds (ETFs) offered in the U.S. raked in $987 million on Monday, their highest since Nov.21, data from SoSoValue shows.
  • As such, market volatility is expected to stay low until the U.S. Nonfarm payrolls (NFP) report on Friday, which some believe will kick-start the new trading year

As people come back from their holiday breaks and prepare for Donald Trump’s presidency in the U.S., there’s growing optimism that Bitcoin and the entire cryptocurrency market will experience an upward trend.

Over the past week, the value of the asset has increased by 10%. On Monday, it regained the $102,000 mark and almost entirely recovered from the losses that occurred in early December. It had dropped from nearly $109,000 on Dec.17 to a temporary low of almost $92,000 on Dec.30, causing brief concerns about a more significant decline.

On Monday, U.S.-based bitcoin ETFs saw a significant inflow of approximately $987 million, marking their highest intake since November 21st, according to data from SoSoValue.

On an exceptional day for exchange-traded funds (ETFs), Fidelity’s FBTC attracted approximately $370 million, BlackRock’s IBIT followed suit with around $209 million, and Ark Invest’s ARKB garnered about $71 million. Remarkably, nine out of the twelve ETFs registered inflows, while none experienced outflows.

Traders are feeling optimistic again about Trump’s proposed cryptocurrency policies and overall economic strategies, which historically tends to boost Bitcoin prices. This bullish trend often signals an upcoming surge in the value of alternative cryptocurrencies, or altcoins.

According to Jeff Mei, COO of BTSE, he thinks that the interest in Bitcoin has increased following the pessimistic outlook from the Federal Reserve in late December which halted the usual holiday market rally, as conveyed in a message sent on Tuesday via Telegram to CoinDesk.

After traders returned from their breaks, they’ve once again begun buying Bitcoin, cryptocurrencies, and stocks, showing a positive trend, with Donald Trump’s inauguration fast approaching – this is according to Mei’s statement.

some investors anticipate reaching approximately $109,000 temporarily over the near future, with a potential bull market following suit, paving the way for further price increases.

As per Alex Kuptsikevich, FxPro’s chief market analyst, the current technical analysis suggests a typical correction ending and a return to growth from the Fibonacci retracement level of approximately 61.8% of Bitcoin’s rally since early November. This prediction would be validated if the previous highs around $109,000 are surpassed with confidence. Following this milestone at $100,000, he anticipates a further increase in Bitcoin’s growth rate.

Fibonacci levels serve as a technical analysis method for locating possible support and resistance points where the price action might momentarily halt or change direction. Some investors think that monitoring Fibonacci levels could provide a forecasting aspect by pinpointing crucial price ranges, which may then trigger price fluctuations in the market due to being a self-fulfilling prophecy.

Market volatility is anticipated to remain low until this week’s U.S. Nonfarm payrolls report on Friday. This significant event may mark the beginning of the new trading year, as many analysts suggest that decision-makers will be actively engaged in the market then, following their return from summer breaks. (Augustine Fan, head of insights at SOFA)

Powerful Non-Farm Payroll (NFP) figures might bolster the US dollar, increasing the likelihood of greater interest rates, a scenario that may adversely impact investment assets such as stocks and bitcoin.

As a researcher, I noted that the most volatile event for the month appears to be the FOMC meeting at its conclusion. This is due to the expectation that economic data will soon display indicators of a ‘soft landing’, signaling a controlled slowdown rather than a hard recession.

During the Asian morning on Tuesday, Bitcoin trades slightly over $101,600, marking a 2% increase in the past day. Meanwhile, the CoinDesk 20 (CD20), an index that follows the largest cryptocurrencies by market cap, has grown by 0.53%.

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2025-01-07 09:00