Author: shaofaye123, Foresight News
Just entering 2025, Bitcoin has once again broken through the $100,000 mark, and the market seems to be gradually warming up in the midst of volatility.
Around 10 pm on January 6th, the BTC price rose and broke through $100,000, currently hovering around $102,000. ETH has also quickly rebounded and broken through $3,600. With good news coming in constantly, BTC has had 7 consecutive daily closes in the green, and the market sentiment seems to be gradually turning optimistic, what has happened in the market?
BTC market data is improving
Bitcoin spot ETF data is one of the important reference indicators for observing the inflow of off-exchange capital. Looking back at December, according to SoSoValue data, there was continuous net inflow in the first half of the month, but the performance in the second half was not satisfactory. Since the beginning of January, Bitcoin ETF spot has seen net inflows again, and its current total net asset value has reached $111.46 billion, with an ETF net asset ratio (market cap to total Bitcoin market cap) of 5.72%, and a cumulative net inflow of $35.91 billion.
Various institutions are increasing their BTC holdings
On January 3rd, according to official news from MicroStrategy, it will raise $2 billion through the issuance of preferred shares in the first quarter to buy more BTC. This laid the foundation for the increase in BTC buy orders. According to Bitwise CEO Hunter Horsley: "According to HODL15Capital statistics, since last Monday, 11 listed companies have purchased more Bitcoin. By 2025, a large number of companies will join the Bitcoin standard. Michael Saylor has scripted a movement."
MicroStrategy has now purchased Bitcoin for nine consecutive weeks, and on January 6th, it again increased its holdings by 1,070 BTC for about $101 million, at an average price of $94,004, with its current holdings reaching 447,470 BTC, with a total holding value of about $44.3 billion.
According to news from Bitcoin mining company MARA Digital, it will continue to increase its Bitcoin holdings on its balance sheet in 2025, and its current holdings are about 44,000 BTC, worth over $4 billion. US-listed company KULR has now increased its holdings to 430.61 BTC, up from 213.43 BTC previously.
Japanese company Metaplanet also plans to increase its Bitcoin holdings to 10,000 BTC in 2025 to expand Metaplanet's influence in Japan and the Bitcoin ecosystem.
According to Cointelegraph, El Salvador has also added 5 more BTC since the new year, bringing its total holdings to 6,009 BTC, worth about $595 million. Institutions around the world are increasing their BTC holdings, and the buying power for BTC is constantly increasing.
Trump-themed Memecoins see a surge, and the altcoin sector continues to rebound
Since Trump's successful election in early November, the market has seen a sustained rally for over a month. In the early hours of January 7th, the US Congress officially confirmed Trump's election as president, and projects and tokens related to him are once again attracting attention.
The Trump-themed Memecoin TRUMP has risen consecutively for 3 days since January 4th, with a gain of over 80%; MAGA, TRUMPCOIN and other Memecoins have also seen gains of nearly 100%, with some pullback yesterday. However, the holdings of World Liberty Financial's tokens LINK, AAVE, ENA, and COW have not seen any significant rallies.
Trump's crypto-friendly attitude is a major factor behind the market's recent optimism. However, according to a Reuters report, Michael Rosen, Chief Investment Officer of Angeles Investments, said that Trump's inauguration ceremony may also bring some surprises to the market, and he is expected to issue at least 25 executive orders on his first day in office, covering a range of issues from immigration to energy and cryptocurrency policy.
Currently, the crypto market sentiment has entered a relatively optimistic state, and the altcoin sector is still in a continuous rebound. According to Alternative.me data, the Crypto Fear & Greed Index has gradually risen back above 70 since January, reaching 78 today, indicating the market is in an "Extreme Greed" state.
Compared to Bitcoin's strong performance, the altcoin sector has seen mixed results. In the 24-hour gains, the public chain sector SOL has broken through $220 USDT again, AVAX has seen about a 6% increase, while the rest of the public chains have stagnated, with SUI falling back to $5 USDT after hitting a new high, and TON fluctuating around $5.7 USDT.
The Ethereum ecosystem, including DeFi, re-pledging, L2, stablecoins and other sectors, has also seen short-term corrections, with EIGEN seeing a small decline after 3 consecutive days of gains, LDO dropping about 3%, ENA seeing around a 10% major correction, and OP and ARB also seeing slight declines after 5 consecutive daily closes in the green.
CES 2025 opens, bringing more good news for the AI concept
The "Tech Spring Festival" CES 2025 (International Consumer Electronics Show) will be held from January 7th to 11th in Las Vegas, USA. During the exhibition, tech giants like Nvidia, AMD, Toyota and Samsung will all make appearances, releasing the latest products and strategic plans for consumers.
Against this backdrop, the US stock market had a pleasant performance on January 6th, with the Dow Jones Index rising over 380 points at the high, the Nasdaq rising 2% before pulling back, and the chip index rising over 4%. The "Tech Seven Sisters" all saw gains, with Metaverse giant Meta up 4.23%, Nvidia up 3.43%, Google A up 2.65%, Amazon up 1.53%, Microsoft up 1.06%, Apple up 0.67%, and Tesla up 0.15%.
With Nvidia CEO Jensen Huang set to deliver the opening keynote on January 7th, Nvidia's stock price has also risen for three consecutive days to a new high. According to market news, Huang may officially release the new generation of GeForce RTX50 series graphics cards, including RTX5090, 5080 and 5060, during the speech.
In the crypto market, AI application tokens are generally rising, and AI Memecoins are still seeing strong momentum. WLD has seen over 10% 24-hour gains, RENDER is up 8%, and IOTA is up 6%. In the 24-hour period, except for small declines in VIRTUAL, ZEREBRO and FARTCOIN, the rest have all seen increases. SWARMS is approaching a $500 million market cap, with over 80% gains. AI16Z has reached $2.25 USDT, up over 25%. GRIFFAIN, ARC and others have risen over 20%, and AIXBT has also rebounded back above $0.55 USDT.
How do analysts view it?
In early February 2024, Markus Thielen, founder and research director of 10X Research, said, "Bitcoin tends to rise 11% around the Lunar New Year." Over the past 9 years, traders who bought Bitcoin 3 days before the Lunar New Year and sold 10 days after the Lunar New Year would have achieved decent returns. And in 2025, the Lunar New Year falls on January 29th, earlier than in previous years, so the market performance is worth looking forward to.
John Glover, Chief Investment Officer of Ledn, said that Bitcoin may pull back to $89,000 and then rebound, reaching $125,000 by the end of the first quarter, and challenging $160,000 by the end of this year or early next year.
Bitfinex released a report stating, "We see the market remains strong. Although there may be a deeper correction in the first quarter of 2025, the bullish sentiment of miners and the overall tightening of supply indicate that Bitcoin has good upside potential in the medium term. The overall selling pressure from miners, long-term holders and other groups has eased significantly. The reduced supply entering circulation has mitigated the impact of the recent corrections."
Bernstein analysts released 10 predictions for the crypto industry in 2025, stating that "the crypto industry will enter the 'Infinite Era', with a Bitcoin price target of $200,000 in 2025, the stablecoin market size will exceed $500 billion, the net inflow of Bitcoin spot ETFs will exceed $70 billion, and the integration of crypto and AI will deepen further."
However, some analysts have also expressed concerns about the market.
QCP stated that "it is not expected that there will be a large-scale short squeeze in the short term, and the relevant catalysts of Trump may not appear until after the inauguration ceremony on January 20."
BitMEX co-founder Arthur Hayes stated in his latest blog post "Sasa" that he believes the cryptocurrency market will peak in mid-March and then experience a severe correction. He advised investors to sell in the late first quarter and wait for liquidity conditions to improve in the third quarter.
