BTC Reclaims $100K Milestone as 2025 Crypto Rally Gains Steam

Bitcoin Breaks $100K Barrier as Early 2025 Rally Gains Traction

Bitcoin (BTC) surged above the $100,000 milestone on Monday, continuing its strong rebound in early 2025 and signaling renewed investor enthusiasm across the crypto market.

The flagship cryptocurrency crossed the six-figure mark during U.S. market hours, climbing to a recent peak of $102,000. This marks a 4.3% increase over the past 24 hours and represents its highest level since December 19.

The broader market followed Bitcoin’s lead, with the CoinDesk 20 index rising 3.5% as all major altcoins registered gains. Ethereum (ETH) climbed 2.8% to around $3,700, while Solana (SOL) advanced 4.5%, crossing $220.

In late 2024, the crypto market experienced a correction as investors took profits following a post-election surge fueled by optimism around President-elect Donald Trump’s pro-crypto stance. Bitcoin reached a local low of $91,000 on December 30 before rebounding strongly in early January.

Institutional Activity Fuels Uptrend

Institutional investors are playing a significant role in Bitcoin’s recovery. MicroStrategy announced an additional purchase of 1,020 BTC, while energy solutions firm KULR Technology Group doubled its Bitcoin treasury with a $21 million acquisition.

Spot Bitcoin ETFs also saw significant inflows, with $908 million recorded on Friday, reflecting a resurgence in institutional demand. Open interest in BTC futures remains lower compared to mid-December levels, indicating the recent price surge is driven mainly by spot buying rather than leveraged speculation.

Cautious Optimism Amid Macro Risks

Despite the positive momentum, analysts are advising caution. Wincent’s senior director, Paul Howard, emphasized the potential for short-term volatility as traders react to macroeconomic cues and upcoming Federal Reserve announcements.

Markus Thielen, founder of 10x Research, echoed this sentiment, pointing to the Fed’s cautious approach toward inflation. “While we expect inflation to cool in 2025, the Federal Reserve may take time to formally shift its stance,” Thielen said. “Investors should prepare for potential corrections amid ongoing uncertainty.”

For now, Bitcoin’s climb above $100,000 sets a promising tone for the year ahead, but market participants remain vigilant as external factors, including central bank policies, continue to shape the outlook.