- Institutional inflows, such as BlackRock’s Bitcoin ETF, have pushed BTC above $100,000.
- Regulatory changes and Putin’s support for BTC add momentum to the continued market rise.
Bitcoin [BTC] has crossed the $100,000 mark, reaching an important milestone for the crypto market. The price increase has drawn attention to factors such as institutional interest, regulatory developments and global support for digital assets.
Below we explore the main reasons behind this increase.
Bitcoin market data reflects strong momentum
At the time of writing, Bitcoin was trading at $102,570 with a 24-hour trading volume of $141.34 billion. Over the past 24 hours, the price has risen 6.19%, while a gain of 6.78% was recorded over the past week.
Bitcoin’s market cap now stands at $2.01 trillion, based on a circulating supply of 20 million BTC.
Bitcoin’s trading range over the past day was between $94,870 and $103,679, marking a new all-time high at $103,679. BTC exchange reserves have also fallen, indicating reduced selling activity.
This suggests that investors are choosing to hold on to their assets.
Source: CryptoQuant
Institutional Inflows Strengthen Bitcoin Rally
Institutional interests have played a major role in Bitcoin’s rise above $100,000. A major contribution has been made by BlackRock’s iShares Bitcoin Trust ETF (IBIT), which recently surpassed the $50 billion mark in assets under management.
Remarkably, IBIT achieved this milestone in just 228 days, much faster than traditional ETFs, some of which have taken years to reach similar levels.
IBIT’s rapid growth illustrates the increasing demand for Bitcoin among institutional investors. BlackRock has also integrated Bitcoin exposure into its traditional funds, further demonstrating its confidence in the cryptocurrency’s potential.
As more institutions embrace BTC as a major financial asset, the market continues to show strength.
Regulatory changes are creating positive sentiment
Regulatory changes have further fueled Bitcoin’s momentum. On December 4, Donald Trump announced Paul Atkins, known for his crypto-friendly stance, will become the new chairman of the SEC, replacing Gary Gensler.
This move has created optimism within the crypto industry as it raises expectations for clearer and more supportive regulations in the US
In addition, Russian President Vladimir Putin expressed strong support for BTC at the Russia Calling Investment Forum. Putin noted:
“These tools will evolve one way or another as everyone strives to reduce costs and increase reliability.”
His comments highlight Bitcoin’s global recognition as a transformative financial technology, adding to the ongoing rally.
Increase in activity in the futures market
The derivatives market has also experienced significant growth alongside Bitcoin’s price increase. Open interest in Bitcoin futures has risen to $64.70 billion, indicating increased activity among both institutional and retail traders, according to an AMBCrypto report.
The rise in open interest indicates continued confidence in BTC, even though short-term profit-taking may occur.
This revival in futures trading strengthens BTC’s position as a sought-after asset in both the spot and derivatives markets.