Bitcoin’s (BTC) price spiked over 10% this past week to regain the $102,000 mark following a steep drop-off in December. This change in sentiment from losses came as the cryptocurrency recouped the burst in price it saw in the middle of December. Traders are increasingly upbeat about the U.S. market pulling out of the holiday funk as it reopens for the first time in weeks, hopeful of favourable economic policies from President-Elect Donald Trump.
Bitcoin ETFs See $1B Inflows in One Day
According to data from SoSoValue, Bitcoin exchange-traded funds (ETFs) attracted $1 billion in capital in one day alone. This was the highest daily gain since November 21. Leading the charge was FBTC, representing $370 million inflows by Fidelity, followed by IBIT, with $209 million inflows by BlackRock.
Ark Invest’s ARKB was also invested by other ETFs and grabbed $71 million. Except for My ETFs, nine out of twelve ETFs registered inflows, a recipe for a robust market recovery. The news is positive for the wider cryptocurrency market, which had been through a month of uncharted uncertainty in December.
Trump Policy Hopes Propel Bitcoin Toward $109K
Market analysts say technical factors and anticipation of Donald Trump’s economic policy have boosted the market. Bitcoin’s downward trend reversed recently, moving back above the key Fibonacci retracement level of 61.8%. Now, some traders aim for $109,000 in the shorter term but seek confirmation of the bullish momentum before targeting future levels higher than that.
BTSE’s COO, Jeff Mei, explained that Bitcoin demand has jumped as traders return from the holiday season. Technical momentum and hope of an upcoming Trump presidency are expected to keep traders buying. Some want to go beyond that $109,000 mark to prove the uptrend continues.
Many traders consider the Fibonacci retracement levels a key influence. Assuming the 61.8% level plays significant support, we could see a return to growth. While Bitcoin is close to its all-time high of $109,000, analysts indicate its growth may accelerate past the $100,000 mark.
Bitcoin Steady Despite Market Focus on NFP Data
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The cryptocurrency market has since recovered, but analysts warn that volatility could stay low until key economic reports are released. Later this week, we have U.S. Nonfarm Payrolls (NFP) data, one such report. However, a positive NFP could benefit the US dollar and increase interest rates, hurting both stocks and Bitcoin.
Many traders are waiting for tangible economic signals on which to base their decisions, said Augustine Fan, head of insights at SOFA. More clarity is expected around the Federal Open Market Committee meeting at the end of the month. But Fan also said economic statistics soon might point to a „soft landing“ of sorts, which has helped the fortunes of risk assets such as BTC.
Due to these economic uncertainties, all eyes have been on BTC, even with speculation over what kind of volatility might result from these events. The price stood at $101,600 in the early hours of Tuesday, up 0.15% over 24 hours. Given the current market environment, both technical and macroeconomic factors make for further movement in the coming weeks.
The strong BTC recovery from recent lows and positive sentiment around Trump’s economic policies are laying the bedrock for further BTC price rises. Traders continue to watch market action and the broader economic picture for additional signals of further growth.
FAQs
What caused Bitcoin’s recent price spike?
Bitcoin’s price surged over 10% due to ETF inflows, technical recovery, and optimism surrounding Trump’s economic policies.
How much capital did Bitcoin ETFs attract in one day?
BTC ETFs recorded $1 billion in inflows, the highest daily gain since November 21.
What is the significance of the Fibonacci retracement level for Bitcoin?
The 61.8% Fibonacci retracement level is a key support level influencing Bitcoin’s bullish momentum.
