Bitcoin ETF Inflows Surge to 6-Week Highs as BTC Climbs Back Above $97K

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In recent developments, the Fidelity’s Wise Origin Bitcoin Fund (FBTC) has taken the lead, attracting an impressive $357 million. Not far behind, BlackRock’s iShares Bitcoin Trust (IBIT) and Ark Invest’s ARKB have also seen substantial inflows, totaling $253 million and $222 million respectively. This surge in Exchange Traded Fund (ETF) investments follows a period of significant outflows, indicating a notable change in market opinion.

Patrick H., a cryptocurrency analyst, observed a positive trend among institutional investors, commenting that “big investors have resumed purchasing following the post-Christmas/end of year selling period.

Bitcoin Price Momentum and Key Support Levels

2025 kicked off with Bitcoin soaring past $97,000 again in its initial week, a 6% increase since the start of the year. This surge comes as the cryptocurrency surpasses one of its crucial milestones – breaking above its 50-day simple moving average. Analysts believe this is a significant step towards maintaining the positive trend, with many anticipating that Bitcoin will soon breach the $100,000 mark and aim for new record highs. Some even forecast that by the end of 2025, Bitcoin could reach as high as $200,000, according to Bitwise’s prediction.

Nonetheless, certain traders are exhibiting apprehension. Analyst Scient has raised some doubts about Bitcoin reaching beyond the $99,000 resistance point, stating, “If we fail to surpass the $99K and make it a new support level, I anticipate prices might decrease in January.

For now, there could be fluctuations in price, possibly dipping between $90,000 and $88,000. However, overall, the feeling among traders is optimistic for the first quarter of the year, with a positive outlook indicated by Daan Crypto Trades who said, “I’m leaning towards a bullish stance for Q1, so I’m not concerned about short-term changes.

On-Chain Metrics Signal Long-Term Strength

Besides ETF investments, on-chain statistics also indicate increasing belief in Bitcoin’s future potential. Around 48,000 Bitcoins, worth approximately $4.5 billion, were taken out of exchanges recently. These removals usually point towards long-term holding, suggesting a move away from short-term speculation.

The Coinbase Premium Index, a vital sign of U.S. institutional interest in cryptocurrency, has risen again over its 14-day moving average following a two-year low in December’s closing days. Burak Kesmeci, an analyst focusing on blockchain data, stated that as long as the Coinbase Premium Index stays above the moving average, it is likely to keep challenging the positive territory.

Approaching $100K: A New Bullish Chapter?

The steady advance of Bitcoin towards the symbolic $100,000 threshold has sparked enthusiasm among market participants. At present, Bitcoin’s value hovers around $98,000, rekindling talk about a fresh bullish trend. Financial gurus such as Robert Kiyosaki envision Bitcoin reaching heights of $175,000 or even $350,000 by 2025, primarily due to growing interest from institutional and retail investors. Similarly, Bitwise foresees a more modest but still significant price target of $200,000 for Bitcoin in the same year.

As a researcher, I must express my optimism about the market trends, yet acknowledge the cautiousness of traders. The upcoming U.S. presidential inauguration, with its potential for short-term volatility, is a concern that traders can’t ignore. Similarly, they are keenly observing regulatory developments, specifically the SEC’s stance on cryptocurrency assets, as these could significantly influence institutional behavior.

A Promising Year Ahead for Bitcoin

1) The significant increase in investments into Bitcoin ETFs, combined with solid data from the blockchain and impressive price gains, implies that Bitcoin might be preparing for another bullish cycle. Fidelity’s lead in ETF inflows highlights increasing institutional trust, while the overall market movement points towards a move towards long-term investment plans.

As Bitcoin nears the significant threshold of $100,000, it appears that growing interest from institutions, robust market foundations, the possibility of another ‘Trump Pump’, and an uplifting outlook are all converging to shape a potentially volatile year for the foremost cryptocurrency.

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2025-01-06 14:12