For the first time in 2025, Bitcoin has crossed the $102,000 mark, marking a significant milestone for the world’s most well-known cryptocurrency. This spectacular increase is attributed to four key factors that propelled Bitcoin's price to new heights.
Institutional Interest
First of all, the revival of institutional interest played a crucial role. After a period of decreased activity at the end of 2024, institutional investors began injecting capital back into the BTC market. For instance, net inflows into U.S.-based Bitcoin ETFs reached $908.1 million last Friday, marking the highest inflow since mid-December 2024.
Exchange Platforms
At the same time, the supply of Bitcoin on exchange platforms has decreased, which is generally considered a bullish indicator. Data from Santiment shows an increase in BTC holdings off exchanges and a decrease in BTC supply on exchanges. This divergence indicates BTC accumulation outside exchanges and a reduction in selling pressure, thereby supporting a bullish thesis for BTC in the short term.
Increase in Transaction Volume
Another determining factor is the increase in the volume of options transactions on Bitcoin, which has nearly doubled in the last 24 hours. This rise in options transaction volume reflects greater investor confidence in the continued rise of BTC prices.
With Bitcoin having reached $100,000, it now aims for $120,000. Technical indicators and bullish momentum support this possibility. However, sufficient transaction volumes and market stability will be essential to breach this new threshold and maintain this progress. The recent surge of Bitcoin above $100,000 today is the result of a combination of factors, including the return of institutional interest, the decrease in supply on exchanges, the increase in options transaction volume, and expectations of cryptocurrency-friendly policies. These elements have created a conducive environment for the rise in BTC prices, which now aim for $120,000 and beyond this January 2025.
