Bitcoin Surges Back Above $100,000 | Global News Avenue

After weeks of volatility, Bitcoin prices topped $100,000 on Monday for the first time since December 19.

In the weeks following the U.S. presidential election, Bitcoin rose more than 50%, hitting around $108,000 in mid-December as investors became optimistic that the incoming Trump administration would adopt policies to support the cryptocurrency market. record high. Over the holidays, the rally stalled, with Bitcoin falling to around $92,000.

The digital currency was trading around $102,000 early Monday afternoon, up from intraday lows around $98,000, with little news to trigger such a shift.

What’s driving Bitcoin past $100,000 again?

One factor that may need to be considered is the flow reversal in spot Bitcoin exchange-traded funds (ETFs). After many days of struggle massive capital outflowsAccording to data from Farside Investors, spot Bitcoin ETF inflows reached $908.1 million on Friday. Starting on December 19, just days after Bitcoin topped $108,000, spot Bitcoin ETFs saw outflows of approximately $1.9 billion.

When investors put money into spot Bitcoin ETFs, these products buy Bitcoin, and this demand drives up the price of Bitcoin. Huge demand for spot Bitcoin ETFs Driving Bitcoin prices higher Early last year and will probably do it again.

Bloomberg ETF analyst said: “Given that the Bitcoin ETF fell below $100,000 (a long overdue breather), I expected Bitcoin ETFs to encounter difficulties, but that was not the case, and they came back strongly on Friday with a price of nearly $1 billion. , raising 1W to a net positive number,” Eric Balchunas noted on X .

Also worth noting: MicroStrategy (Magnetic transmission technology) bought more Bitcoin for ninth straight week, despite $101 million Recent purchases are less than those in previous weeks. Even though MicroStrategy is considered Bitcoin proxy.