Bitcoin breaks through the $100,000 mark, a market frenzy is coming! Analysis of the three driving forces behind it, is a bull market in 2025 on the way?
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Bitcoin stirs the market again, breaking through the $100,000 mark!
On December 5, 2024, Bitcoin first broke through the $100,000 mark, and on December 17, it further climbed to an all-time high of $108,369.05. However, a year-end correction led Bitcoin to close at $93,552.66, a drop of about 13.67% from its peak.
Entering 2025, Bitcoin once again welcomed a strong rise, increasing by 9.30% in just six days from January 1 to 6, easily breaking through the $100,000 mark. However, the market experienced a 9.4% correction from January 7 to 9, with funds flowing out temporarily, leading the market into a period of volatility.
The real surge began from January 14 to 15, with Bitcoin making a strong rebound of 6.30%, quickly returning to around $100,000. As of now, Bitcoin is priced at $99,784.47, market confidence is rising, bullish momentum is strong, and it seems to suggest more upward potential!
So, who exactly is behind this wave of surging growth? How long can it last?
Three key factors driving Bitcoin's surge!
With Trump's ascendance approaching, the market expects favorable crypto policies.
On January 20, 2025, Donald Trump will take office as President of the United States again. Compared to the current government, Trump has a more friendly attitude towards cryptocurrencies, and the market generally expects that the Trump administration may relax regulations on cryptocurrencies and even promote the widespread acceptance of Bitcoin ETFs. Once the policy is implemented, it is expected to attract a large influx of funds into the market, further driving up Bitcoin's price.
Changes in the political landscape combined with favorable policies have led to a surge in market funds, pushing Bitcoin's price skyrocketing!
The Federal Reserve may cut rates earlier, and market risk appetite is recovering.
In December 2024, the U.S. core inflation rate fell from 3.3% to 3.2%, and inflationary pressures are gradually being controlled. The market's expectations for the Federal Reserve to cut interest rates are becoming increasingly clear. Experts generally predict that the Federal Reserve may cut rates earlier in the future, releasing more liquidity, especially in times of economic pressure. Bitcoin, as a risk asset, is bound to become a safe haven for institutional investors.
Historical experience shows that every time the Federal Reserve cuts rates, Bitcoin's price usually welcomes a super bull market, with demand for Bitcoin surging!
Israel-Hamas ceasefire, global risk aversion eases, Bitcoin benefits.
On January 15, U.S. President Biden announced a ceasefire agreement between Israel and Hamas. With the global situation stabilizing, risk aversion significantly eased, and the attractiveness of gold, the U.S. dollar, and bonds declined. Market funds began to flow back into risk assets such as Bitcoin and stocks.
The easing of geopolitical tensions has brought new investment opportunities for Bitcoin, with safe-haven funds flowing back into the crypto market, further pushing up Bitcoin's price!
On-chain data: large holders are entering the market, signaling a super bull market!
In addition to macro factors, on-chain data also reveals signs that Bitcoin is about to welcome a super bull market:
The number of whale wallets (holding 10+ BTC) has surged, and large funds are starting to hoard coins! The number of small retail wallets is decreasing, indicating that market chips are concentrating towards larger funds. Historical data shows that whenever whale funds enter the market, Bitcoin's price tends to rise significantly!
These signals indicate that smart money is positioning itself in advance, and the market may welcome a real major rally!
Bitcoin's future: Is $1 million just the beginning?
Bitcoin breaking through $100,000 is just a starting point, and the market's expectations for its long-term prospects are more optimistic. Based on institutional forecasts:
By 2030, Bitcoin may reach $610,646, and by 2050, its price could potentially hit $12,436,545.
If Bitcoin continues to be adopted globally, its value will far exceed our current imagination!
How much longer can Bitcoin rise?
This round of Bitcoin's explosive growth is driven by three major factors: policy, liquidity, and geopolitical issues, and market sentiment has been completely ignited. If the Trump administration implements crypto-friendly policies and the Federal Reserve begins to cut rates, the bull market for Bitcoin may just be beginning.
**Investor Reminder:** The market is ever-changing, with opportunities and risks coexisting. For those long-term bullish on Bitcoin, now may be a critical time for positioning.
Can Bitcoin stabilize at $100,000, or even challenge higher targets? **Can Trump bring a new round of policy benefits for Bitcoin?** When the Federal Reserve cuts rates will be a key variable in the future!
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