Bitcoin has surpassed $100,000 again, trading at $102,504 after a gain of 5.66% last week. The cryptocurrency’s initial surge was driven by optimism regarding the Trump administration’s policies, despite a recent trend of profit-taking. Recovery in the Bitcoin Coinbase Premium signals renewed demand, while MicroStrategy continues to invest in Bitcoin. The outlook for 2025 is uncertain as experts point to potential pitfalls ahead.

Bitcoin has regained a significant milestone, trading at $102,504 with a 4.1% rise as of Monday, following a weekly gain of 5.66%, marking its largest increase since late November, according to Bloomberg data. The cryptocurrency had previously reached a peak of $108,315, fueled by hopes of favorable policies from the incoming Trump administration. However, Bitcoin’s bullish momentum appeared to stall toward the end of December as investors began to realize profits.

The recent recovery in Bitcoin’s Coinbase Premium, a key metric gauging US demand, suggests renewed investor interest following a slump to its lowest point after the FTX collapse in 2022. This premium is essential as most ETF issuers rely on Coinbase for trading and custody. Joe McCann, CEO of Asymmetric, emphasized the influence of ETF demand on the premium’s fluctuations. Additionally, MicroStrategy has continued its Bitcoin purchasing trend, acquiring $101 million in the cryptocurrency last week, although this marks a decline from previous acquisitions that exceeded $1 billion late last year.

Looking ahead, Bitcoin’s future in 2025 may be significantly influenced by Donald Trump’s crypto policy commitments, including plans for a national Bitcoin stockpile. Nonetheless, there are questions regarding the sustainability of the current rally; a recent survey indicated that 39% of respondents view Bitcoin as the most likely investment to falter in 2025.

The fluctuations in Bitcoin’s price are profoundly affected by market sentiment and investor behaviors. Recent optimism surrounding potential pro-cryptocurrency policies from the upcoming Trump administration has prompted interest in the cryptocurrency market. Following a volatile period characterized by profit-taking in December, the market has witnessed renewed interest with Bitcoin’s price rising again. Metrics such as the Coinbase Premium provide insight into regional demand, indicating shifts that are essential for investors’ strategies in the dynamic cryptocurrency landscape. Companies like MicroStrategy have been instrumental in driving market activity through substantial Bitcoin purchases, affecting perceptions and trends in the crypto space.

In summary, Bitcoin has reclaimed the $100,000 mark, buoyed by investor optimism regarding potential policies from the Trump administration. The recovery of the Coinbase Premium signifies improved demand, with notable investments from firms such as MicroStrategy reaffirming market confidence. However, the future of Bitcoin remains uncertain, with industry experts indicating potential obstacles in sustaining its rally into 2025, highlighting the importance of monitoring upcoming regulatory actions and market sentiment.

Original Source: economictimes.indiatimes.com

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