Bitcoin, the world’s largest cryptocurrency, is on the cusp of breaching the $100,000 threshold, gaining momentum ahead of Donald Trump’s US election victory certification.
The digital asset climbed by 1.41% on Monday to $99,871, capping off a robust week with a 5.66% rise—its strongest performance since 24 November, according to Bloomberg data.
After a stellar run in 2024, Bitcoin’s rally faltered in December as investors locked in profits. However, optimism about a pro-crypto White House under Trump has reinvigorated the market.
Earlier hopes of supportive policies had propelled Bitcoin to a record high of $108,315. With Congress set to certify Trump’s win on Monday, bullish sentiment is building among investors.
“A super cycle in 2025 is on the horizon, driven by anticipated regulatory reforms from the Trump administration,” said Khushboo Khullar, venture partner at Lightning Ventures, a firm investing in Bitcoin-related companies.
Surge in Bitcoin ETFs Signals Renewed Investor Interest
Investor confidence has been further bolstered by a significant inflow into Bitcoin exchange-traded funds (ETFs).
Last Friday, US Bitcoin ETFs saw net inflows of $908 million—the fifth-largest on record since their debut in January 2024. This marked a sharp recovery from a record net outflow of $680 million on 19 December.
The resurgence in the Bitcoin Coinbase Premium metric also signals heightened demand in the US market. This indicator measures the price differential between Coinbase, a major US crypto exchange, and Binance, a global crypto platform.
After plunging to its lowest level since the collapse of FTX in 2022, the premium has bounced back, reflecting growing investor confidence.
“The ETF issuers largely trade and store assets with Coinbase, so demand for ETFs tends to influence the premium or discount,” explained Joe McCann, CEO of Miami-based crypto hedge fund Asymmetric.
Bitcoin’s 2025 Outlook Hinges on Trump’s Policies
Looking ahead, Bitcoin’s performance in 2025 will depend on Trump’s ability to deliver on his crypto-friendly promises, including creating a national Bitcoin reserve. However, scepticism remains about the sustainability of the rally.
In a 6 January MLIV Pulse survey, 39% of respondents identified Bitcoin as the most likely 2024 winner to falter in 2025—a warning sign that volatility may lie ahead.
For now, though, Bitcoin’s approach to the $100,000 mark underscores its resilience and the renewed enthusiasm among investors anticipating a favourable policy environment.
