Bitcoin rallies above 100k – Are the bulls back in control?

Bitcoin recovered from last week’s low of 91.3k, rising back above 100k for the first time since December 19, reaching a peak of 102.7k in early trade. Bitcoin is up over 2.1% across 24 hours, and the market cap has soared over $2 trillion again.  

The dramatic rise in Bitcoin’s price has been aided by strong ETF demand, rising US investor confidence, and optimism ahead of Trump’s inauguration.  

BTC ETF inflows above $900 million  

On January 6th, Spot Bitcoin ETFs in the US recorded their highest inflows since November 21, with $978 million equating to 9,577 BTC entering investment products. This marks the second consecutive trading day with more than $900 million in inflows after January 3, when $908 million entered the 11 funds. 

MicroStrategy has also been a major player in Bitcoin's recent surge after announcing further purchases. The company acquired a further 1000 BTC tokens, marking the ninth consecutive week of purchases. The company now holds 447,470 Bitcoin, valued at $27.97 billion. This strategic corporate buying has no doubt contributed to Bitcoin's rise above the 100K mark. 

US investor confidence 

The Coinbase Premium Index (CPI) highlights the role of US investors in boosting Bitcoin demand. A positive CPI shows heightened demand for Bitcoin on US-based exchanges such as Coinbase compared to global counterparts, signaling stronger buying pressure from U.S. market participants. 

The CPI has recently flipped positive as US investors appear to be leading the Bitcoin rally above the 100K milestone amid confidence in the asset's long-term potential.  

Optimism ahead of Trump’s inauguration 

Donald Trump will be inaugurated as U.S. President on January 20th, and there is growing optimism about a more favourable crypto environment under his second administration. 

Crypto traders are keenly awaiting further clues over what Trump's policies will mean for the crypto industry after he vowed to make America the crypto capital of the world. Trump has nominated several crypto-friendly candidates to key cabinet and regulatory positions. However, Bitcoin could also face some headwinds. There is some uncertainty over Trump's wider economic policies and how aggressive his expected trade tariffs could be. Fears of trade wars or a revival of inflation could dampen Trump optimism. 

Where next for Bitcoin? 

BTC/USD has recovered from last week’s 91.3k low, retaking the 50 SMA and the 98-100k resistance zone. This combined with the RSI above 50 keeps buyers hopeful of further gains. 

The next leg higher is dependent on Bitcoin rising above 103k to bring the 108K record high into play. A decisive move above here could bring 110k and 125k into focus. 

However, failure to sustain the move above 100k could see the price retest 95k support zone.

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