Bitcoin Nears $100,000 as Crypto Market Reaches $3.4 Trillion
Bitcoin is on the verge of reaching the psychological and historical milestone of $100,000. As of Friday, its price hovers around $99,000, after reaching a peak earlier in the night. Nearly fifteen years after its creation, the pioneering cryptocurrency confirms its central position in a booming ecosystem. The total market capitalization of the crypto market also reaches an unprecedented record of $3.4 trillion, supported by a 4.5% increase in the past 24 hours.
Contagion Effect on Altcoins
The strength of Bitcoin acts as a catalyst for other major cryptocurrencies. Ethereum, up by 9% in the past 24 hours, is waking up after a disappointing week. Low-cap tokens closely correlated to Ether, such as MOG and PEPE, are climbing over 20%, benefiting from the growth of the Ethereum ecosystem. Solana has surpassed $260 for the first time, propelled by announcements of new ETFs in the United States and increased usage of its blockchain for memecoin trading. Cardano has surged by 12%, while XRP from Ripple stands out with a spectacular 25% jump, directly linked to the imminent departure of SEC Chairman Gary Gensler, seen as a victory for US business-related crypto projects.
A Historic Surge Towards $100,000
Bitcoin’s meteoric rise is accompanied by massive flows into Bitcoin ETFs in the United States. These ETFs recorded over $1 billion in net inflows, with BlackRock leading the way with $600 million injected into its flagship product, IBIT. Fidelity also captured $300 million in new capital. No withdrawals have been observed among the eleven listed ETFs, highlighting widespread investor confidence.
Perspectives of a Bullish Crypto Market
The favorable climate surrounding Bitcoin is amplified by positive expectations regarding the incoming Trump administration, set to take office in January. The hope for a more crypto-friendly government fuels growing optimism among investors, with Bitcoin options already anticipating prices above $100,000 for 2025. The options and futures market reflects this enthusiasm, with Bitcoin futures expiring in March, June, and September 2025 trading above $100,000. Call options at this price level record an open interest exceeding $2 billion, a clear indication of bullish trader expectations.
An End-of-Year Under Tension
Analysts agree on the possibility of a technical retracement approaching $100,000, but the fundamentals remain strong. Demand for Bitcoin remains high, supported by accommodating global monetary policy. Institutional investors and individuals seem ready to maintain their optimism as 2024 comes to an end.
If Bitcoin surpasses the symbolic threshold of $100,000 in the coming days, it will mark a new milestone in the adoption of cryptocurrencies and lay the foundation for an even more dynamic market next year. Who knows, CoinAcademy may take this opportunity to express its gratitude to its community…
