Bitcoin hit a new all-time high of $107,822 around 1:30 PM EST on Monday, up about 5.5% from last Friday's close. At the same time, Ethereum briefly rose to $4,081, the highest level since December 2021, slightly higher than the peaks in March and early December this year.
As of the time of writing, Bitcoin's upward momentum has eased slightly, with the current price at $105,815, up nearly 3% for the day and 9% for the week.
ETH is at $4,029, up over 3% for the day, but still 16% below the record high of $4,878 set in November 2021. The total cryptocurrency market capitalization has increased by 2.97% in the past 24 hours, reaching $3.7 trillion.
According to CoinGlass data, the total liquidation in the crypto market over the past 24 hours was $489 million, with Bitcoin accounting for $177 million and Ethereum (including long positions) for $97 million.
Crypto fund inflows reach new highs
Global cryptocurrency funds have continued to attract strong interest from institutional investors, with inflows reaching a new record high. According to data from CoinShares, global cryptocurrency funds have recorded net inflows for the past four weeks, totaling $3.2 billion. This positive trend has resulted in total inflows of $44.5 billion so far this year, more than four times the previous annual high.
Bitcoin exchange-traded funds (ETFs) listed in the US have been particularly outstanding, attracting $2.17 billion in net inflows over the past week, bringing the total inflows since their launch in January this year to over $5.3 billion.
In addition to Bitcoin, Ethereum funds have also recorded seven consecutive weeks of net inflows, totaling $1 billion, as market sentiment towards Ethereum continues to improve, driving persistent inflows. Bernstein analyst Gautam Chhugani said: "Ethereum ETF inflows have exceeded $800 million per week over the past two weeks, reflecting an accelerating trend."
Other Altcoin funds have also recorded varying degrees of net inflows. The XRP investment product saw a net inflow of $145 million last week, while funds based on Polkadot and Litecoin saw inflows of $37 million and $22 million, respectively.
The "Christmas rally" has begun
Investor sentiment has been boosted by MicroStrategy's (MSTR.O) inclusion in the tech-heavy Nasdaq 100 index, with MicroStrategy's stock price soaring more than sixfold so far this year, reaching a market capitalization of nearly $94 billion.
Matthew Dibb, Chief Investment Officer of crypto asset management firm Astronaut Capital, believes that inclusion in the Nasdaq 100 will create a virtuous cycle: passive funds tracking the index will buy MicroStrategy shares, pushing up the stock price; MicroStrategy can then continue to increase its BTC holdings through issuing bonds or shares, further consolidating its position and attracting more investor attention, driving the stock price even higher.
He said: "The inclusion seems a bit surprising, but it hasn't stopped the excitement, with many seeing it as the start of a capital cycle that could push up the spot price of Bitcoin."
Data over the past eight years shows that since 2015, Bitcoin has closed higher in December six times, with gains of at least 8% and up to 46% (except in 2020).
This year's Christmas rally appears to have started early, with the Christmas rally referring to the frequent upward trend in US stocks during the last week of December and the first few days of January. This upward trend is often influenced by holiday optimism, increased holiday spending, and investors' year-end trading activities.
IG analyst Tony Sycamore told CNBC: "We are now in a range-bound environment. The next number the market is looking for is $110,000. A lot of people's guesses about a pullback haven't materialized."
Mena Theodorou, co-founder of Coinstash, believes: "With BTC firmly above $100,000, the momentum of ETH growth and massive ETF inflows may signal the start of a broader Altcoin Christmas rebound. Add in Trump administration support for cryptocurrencies, easing inflation, and the potential for Fed rate cuts, and the conditions supporting potential crypto market growth are very strong."
Meanwhile, some traders are targeting BTC reaching $120,000 or more over the next year.
Jeff Mei, Chief Operating Officer of cryptocurrency exchange BTSE, said in a Telegram post: "We believe Bitcoin still has tremendous upside potential and could easily reach $125,000 by the end of 2025. While some have suggested the upside potential has been digested over the past month or so, we believe the rally is just getting started. This is because it takes time for institutions, family offices, and high-net-worth individuals to get comfortable with the idea of allocating 1%-3% of their portfolios to Bitcoin and cryptocurrencies. Once that happens, the inflow of crypto could skyrocket. With tailwinds like Trump's pro-crypto appointments and ongoing rate cuts, there are many bullish reasons."
