Kicks Off 2025 with Push Through $100,000 Barrier

TLDR

• Bitcoin crossed back over $100,000 threshold in first week of January 2025, showing a 4.3% gain in a single trading day
• Two major corporate purchases emerged with MicroStrategy adding 1,020 BTC and KULR Technology doubling its position
• Market data shows strong spot buying with $908M ETF inflows while futures leverage remains relatively low
• Other cryptocurrencies followed Bitcoin’s lead with Ethereum reaching $3,700 and Solana topping $220
• Analysts point to potential market shifts around Federal Reserve’s upcoming January meeting

Bitcoin has kicked off 2025 with renewed momentum, pushing through the $100,000 mark as institutional activity picks up following the holiday break. The leading cryptocurrency reached $102,000 on Monday, marking its highest point since mid-December.

The price movement gained steam during U.S. market hours, with Bitcoin recording a sharp 2.5% increase within a single hour as Wall Street began trading. This surge contributed to an overall 4.3% gain over 24 hours, erasing much of December’s late-month decline.

Corporate buyers have emerged as key drivers of the current rally. MicroStrategy, known for its steady Bitcoin accumulation strategy, announced a fresh purchase of 1,020 BTC on Monday. Texas-based energy management company KULR Technology Group made headlines by doubling its Bitcoin position with a $21 million investment.

The spot market has shown particular strength, with Bitcoin ETFs recording $908 million in inflows on Friday. This surge in spot activity presents a notable contrast to the futures market, where open interest remains well below mid-December levels across major exchanges including CME.

Alternative cryptocurrencies have followed Bitcoin’s upward trajectory. Ethereum, the second-largest cryptocurrency by market value, rose 2.8% to reach $3,700. Solana demonstrated even stronger performance with a 4.5% gain, pushing its price above $220.

Market analysts note that the current rally appears more sustainable than previous upswings due to its foundation in spot buying rather than leveraged trading. Data from CoinGlass shows neutral funding rates across trading platforms, suggesting a lack of excessive speculation in the derivatives market.

The broader cryptocurrency market index, measured by the CoinDesk 20, posted a 3.5% gain as all twenty major cryptocurrencies recorded positive returns. This widespread advancement indicates broad market participation rather than isolated movement in Bitcoin alone.

Trading volumes have begun recovering from their holiday lull, when both activity and prices had declined. Bitcoin had touched a local bottom near $91,000 on December 30, representing a 15% retreat from its recent peak following Donald Trump’s election victory.

Paul Howard, senior director at crypto trading firm Wincent, explained the market dynamics via Telegram:

“The return of institutional activity after year-end balance sheet adjustments was expected. We’re seeing natural demand recovery as we enter what many anticipate will be a positive year for digital assets.”

However, Howard added a note of caution about current price levels, suggesting that market participants should prepare for increased volatility in the coming weeks.

The cryptocurrency research firm 10x Research has projected continued market strength through the presidential inauguration period. However, their analysis warns of potential selling pressure as January progresses, particularly around the Federal Reserve’s upcoming meeting.

The Federal Reserve’s December meeting, which featured hawkish comments from Chair Jerome Powell, previously triggered market uncertainty. Analysts suggest that even if inflation data improves, the Fed may maintain its cautious stance in the near term.

Markus Thielen of 10x Research highlighted the Fed’s communication as an ongoing market risk, particularly if inflation concerns resurface. While the firm expects lower inflation figures this year, they note that formal recognition of this trend by the Federal Reserve could take time.

Recent market data shows relatively modest leverage compared to previous rally periods. The reduced open interest in Bitcoin futures across both institutional and retail platforms suggests the current price movement relies more heavily on spot market buying than leveraged positions.

CoinGlass data reveals neutral funding rates across exchanges, indicating balanced positioning in the derivatives market. This contrasts with periods of excessive leverage that often characterize unsustainable price movements.

The current market structure, with strong spot buying and controlled leverage, suggests a more measured advance compared to previous rallies. However, analysts continue to monitor Federal Reserve policy as a key factor that could influence market direction in the coming weeks.

4