Author: shaofaye123, Foresight News
Just as we entered 2025, Bit again broke 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 also quickly rebounded and broke through $3,600. With good news coming in constantly, BTC has had 7 consecutive daily closes in the green, and the market seems to be gradually becoming optimistic. What's happening in the market?
BTC market data is improving
Bit 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, Bit ETF spot has realized net inflow again, and its total net asset value has reached $111.46 billion, with the ETF net asset ratio (market value to Bit total market value ratio) reaching 5.72%, and the cumulative net inflow has reached $35.91 billion.
Various institutions are increasing their BTC holdings
On January 3, 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, 11 listed companies have purchased more Bit since last Monday. By 2025, a large number of companies will join the Bit standard. Michael Saylor has scripted a movement."
MicroStrategy has now purchased Bit for nine consecutive weeks. On January 6, it again increased its holdings by 1,070 Bit for about $101 million, at an average price of $94,004, and its current holdings have reached 447,470 Bit, with a total holding value of about $44.3 billion.
According to news from Bit mining company MARA Digital, it will continue to increase its Bit holdings on its balance sheet in 2025, and its current holdings are about 44,000 Bit, worth over $4 billion. US-listed company KULR has currently increased its holdings to 430.61 Bit.
Japanese company Metaplanet plans to increase its Bit holdings to 10,000 Bit in 2025 to expand Metaplanet's influence in Japan and the Bit ecosystem.
According to Cointelegraph, El Salvador has also added 5 Bit since the new year, bringing its total holdings to 6,009 Bit, worth about $595 million. Major institutions around the world are increasing their BTC holdings, and the buying power of BTC is constantly increasing.
Trump concept Memecoin sees 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 a month. In the early morning of January 7, the US Congress officially confirmed Trump's election as president, and the crypto projects and related tokens related to him have once again attracted attention.
The Trump concept Memecoin TRUMP has risen for 3 consecutive days since January 4, with a gain of over 80%; MAGA, TRUMPCOIN and other Memecoins have seen gains of nearly 100%, but have fallen back somewhat yesterday. However, the holdings of its family project World Liberty Financial in tokens such as LINK, AAVE, ENA, and COW have not seen any obvious surge.
Trump's crypto-friendly attitude is one of the major factors 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, involving a series of issues from immigration to energy and crypto currency policies.
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 rebounded above 70 since January, reaching 78 today, and the market has turned into an "extreme greed" state.
Compared to Bit's strong performance, the altcoin sector has seen mixed results. In the 24-hour gains, the public chain sector SOL broke through $220 USDT again with an increase, AVAX achieved about 6% gains, while the rest of the public chains saw stagnant gains, SUI fell back to around $5 USDT after hitting a new high, and TON fluctuated 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 falling about 3%, ENA seeing a large correction of around 10%, and OP and ARB also seeing slight declines after 5 consecutive daily closes in the green.
The tech CES is held, and the AI concept sees further boosts
The "tech Spring Festival Gala" CES 2025 (International Consumer Electronics Show) will be held in Las Vegas, USA from January 7 to January 11. During the exhibition, tech giants such as Nvidia, AMD, Toyota and Samsung will all appear, releasing the latest products and strategic plans for consumers.
Against this backdrop, the US stock market had a pleasant rise on January 6, with the Dow Jones Index rising more than 380 points at the highest, the Nasdaq rising 2% before falling back, and the chip index rising more than 4%. The "Tech Seven Sisters" saw a general rise, with Meta of the Metaverse 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%.
And with Nvidia CEO Jensen Huang set to deliver the opening keynote on January 7, Nvidia's stock price has 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, in his speech.
In the crypto market, AI application coins are generally rising, and AI Memecoins are still in an upward trend. WLD has seen a gain of over 10% in 24 hours, RENDER has gained 8%, and IOTA has gained 6%. In the 24-hour period, except for a slight decline in VIRTUAL, ZEREBRO, and FARTCOIN, the rest have all risen. SWARMS is approaching a $500 million market cap, with a gain of over 80%. AI16Z has reached $2.25 USDT, up more than 25%. GRIFFAIN, ARC and others have all risen more than 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, "Bit usually rises 11% around the Lunar New Year." Over the past 9 years, traders who bought Bit 3 days before the Lunar New Year and sold it 10 days after the Lunar New Year would have achieved good returns. And the 2025 Lunar New Year is on January 29, which is earlier than in previous years, so the market performance is worth looking forward to.
John Glover, Chief Investment Officer of Ledn, said that Bit may fall 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 the beginning of 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 Bit 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 target Bitcoin price of $200,000 by 2025, the stablecoin market size will exceed $500 billion, and net inflows into spot Bitcoin ETFs will exceed $70 billion, and the integration of crypto and artificial intelligence will deepen further."
However, some analysts have also expressed concerns about the market.
QCP said, "We do not expect a large-scale short squeeze in the near term, and the relevant catalysts from Trump may not appear until after the inauguration on January 20."
BitMEX co-founder Arthur Hayes stated in his latest blog post "Sasa" that he believes the crypto 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.
