On December 16, the price of Bitcoin continued its recent strong performance, briefly breaking through $107,700 and successfully setting a new all-time high. Behind this round of price increase, the surge in spot market trading volume, the continuous influx of institutional capital, and the improvement in the overall market sentiment have collectively provided a solid support for the soaring Bitcoin price. Industry analysts generally believe that Bitcoin will next challenge the $115,000 or even higher price level.
Spot Trading Volume and Market Sentiment Drive the Increase
BTC/USDT 4-hour chart (Binance). Source: TRDR.io
Unlike the previous "leveraged bull market," this Bitcoin price surge is mainly driven by the real buying power in the spot market. Especially on Sunday, December 15, the US trading session showed strong buying momentum, and the Coinbase Premium reappeared, indicating that US investors still have strong buying interest at high prices. At the same time, the spot market trading volume on Binance and the trading activity of BTCUSDT perpetual futures have also risen significantly, further pushing the BTC price to quickly break through the key resistance area of $103,000 to $104,000.
Market observers point out that as the inflation expectations of the world's major economies continue to rise, the hedging attributes of Bitcoin as "digital gold" have once again gained the favor of investors. In addition, the expectation of a loose global macroeconomic liquidity environment has continuously released the demand for institutional and high-net-worth investors to increase their positions.
Continuous Institutional Buying Boosts Market Sentiment
The continuous increase in institutional investors' positions in Bitcoin is an important catalyst for this round of price increase. Recently, the latest purchase trends of MicroStrategy and Semler Scientific have attracted widespread market attention:
- Semler Scientific purchased 211 BTC at an average price of about $101,890, with a total value of about $21.5 million.
- MicroStrategy again purchased 15,350 BTC at a price of about $100,386, with a total cost of up to $1.5 billion, as part of the company's ongoing accumulation strategy.
It is worth noting that MicroStrategy currently holds a total of more than 439,000 Bitcoins, with a total value of about $46.5 billion. The company's CEO, Michael Saylor, stated that as the pressure of fiat currency depreciation increases globally, Bitcoin will continue to be an important tool for institutional asset allocation, especially in an environment where the demand for hedging and appreciation coexists.
Continuous Inflow of ETF Funds Accelerates Institutionalization
The successful launch of Bitcoin spot ETFs has accelerated the influx of institutional capital, further enhancing the long-term expectations of the market. According to data platform SoSoValue, as of the week ending December 12, the weekly inflow of funds into spot ETFs reached $2.17 billion, and the total net asset size exceeded $114.97 billion, setting a new historical high.
The inflow of ETF funds not only improves the liquidity of the Bitcoin market, but also allows more traditional financial institutions to allocate BTC assets through compliant investment channels, thereby driving a comprehensive increase in market participation. Senior market analysts point out that the impact of ETF inflows on Bitcoin prices will exhibit a "gradual accumulation" characteristic, and is expected to become a long-term driving force for the steady rise of Bitcoin prices in the future.
Market Analysis: Is Bitcoin's Next Target $115,000?
Independent market researcher Willy Woo, through on-chain data analysis, pointed out that the daily capital inflow to the Bitcoin network has remained stable above $3 billion in the past 30 days, highlighting the current market's high attention and activity on BTC. The scarcity and liquidity appeal of Bitcoin provide it with further upside potential.
Investor Timothy Peterson, based on the trend of ETF fund inflows, predicts that Bitcoin is expected to challenge $115,000 in the short term. In addition, the growth in open interest (OI) in the derivatives market and the signs of tightening liquidity supply in the market also provide strong support for further price increases.
