Bitcoin

Bitcoin surged above the $100,000 mark for the first time in 2025, reaching a high of $101,192 before pulling back slightly. This marks a significant rebound after a period of volatility, which saw Bitcoin trading below $100,000 for nearly three weeks, including a sharp 5.6% drop on Dec. 18, 2024. Although it has yet to reach its all-time high of $108,135, the move signals growing optimism in the market despite a mixed sentiment following the Federal Reserve’s December meeting.The crypto market, as well as broader equities, faced a sell-off after the Fed decided to revise its outlook on interest rate cuts. However, analysts are forecasting a recovery in early 2025, with Bitcoin seen as navigating a tactical trading range. Research firm 10x <a href="https://mail.10xresearch.co/p/our-bitcoin-crypto-game-plan-for-january-this-indicator-signals-a-btc-rebound" rel="nofollow">noted</a> that while a straightforward bullish trend may not materialize, there are opportunities for strategic positioning.Institutional interest in Bitcoin remains strong, with MicroStrategy purchasing 1,020 BTC and KULR Technology Group adding $21 million worth of Bitcoin to its treasury. These moves highlight the growing demand for the digital asset, evidenced further by $908 million in inflows into spot Bitcoin ETFs. Despite this, analysts caution that volatility will likely continue, with the market primarily driven by spot buying rather than leverage.Bitcoin&#x27;s price surge is also buoyed by the potential impact of President-elect Donald Trump&#x27;s proposed Bitcoin reserve. This plan would involve the U.S. government retaining its current Bitcoin holdings, estimated at 210,000 BTC, and potentially acquiring more. Trump&#x27;s upcoming inauguration on Jan. 20, 2025, could shift market sentiment, particularly if the U.S. government becomes more active in acquiring Bitcoin.Metaplanet Inc., a venture capital firm based in Japan, has also seen significant growth in its Bitcoin holdings. It plans to increase its BTC holdings by 470% in 2025, aiming for 10,000 BTC as part of its ongoing strategy to expand its Bitcoin treasury. The company, which has been accumulating Bitcoin since April 2024, has reinforced its position as a key player in the Asian Bitcoin market.While the overall outlook for Bitcoin remains positive, concerns linger about the Federal Reserve&#x27;s future actions. According to 10x Research, the primary risk to the market is the Fed’s communication on inflation and interest rates, which could cause fluctuations in Bitcoin&#x27;s price. Even as the market recovers, experts warn that it may take time for the Fed to shift its stance if inflation remains a concern.As the year progresses, Bitcoin’s performance will likely be shaped by both market dynamics and political developments, especially with Trump&#x27;s proposals. The next few weeks will be crucial in determining the trajectory of Bitcoin and the broader crypto market for 2025.

Bitcoin Surpasses $100,000 for First Time in 2025 as Market Reacts to Fed’s December Moves and Trump’s Bitcoin Reserve Proposal

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