The supply of Bitcoin on centralized exchanges has continued to gradually shrink as whale investors led by US spot BTC ETFs continue to aggressively accumulate.
As the US Congress certified Donald Trump’s presidential election ahead of the much-anticipated inauguration in two weeks, the cryptocurrency market, led by Bitcoin BTC $106 682 24h volatility: 1.1% Market cap: $2.12 T Vol. 24h: $20.57 B , gained bullish momentum. The flagship coin surged over 2.5% in the past 24 hours to reach a daily peak of about $102,512 before retracing to trade about $101.8K at the time of this writing.
As BTC price rallied above $100K for the first time in 2025, the fear of further correction significantly diminished. Moreover, Bitcoin’s fear and greed index surged to around 78%, which represents extreme greed from the crypto traders.
From a technical analysis standpoint, Bitcoin price successfully broke out of a crucial resistance level of around $99.3K, thus confirming the onset of the next bullish wave. Furthermore, BTC price, in the daily time frame, has consistently closed above the 50 Moving Average (MA), signaling the bulls are in control.
According to crypto analyst Captain Faibik, Bitcoin price has successfully rebounded from the lower border of an ascending wedge formation, with a midterm target of about $112K.
$BTC #Bitcoin so far, so good..!! https://t.co/RjlVN8r5xA pic.twitter.com/uzjNY8GRBk
— Captain Faibik 🐺 (@CryptoFaibik) January 7, 2025
Top Reasons Why Bitcoin Price Rallied Today
The recent Bitcoin pump above $100K for the first time in 2025 is majorly bolstered by the rising demand from whale investors and the robust fundamentals. According to on-chain data analysis by Coinglass, the supply of Bitcoin on centralized exchanges declined by more than 47.5k in the last seven days to hover about 2.2 million at the time of this writing.
The notable Bitcoin outflows from the CEXes are largely due to the rising demand from whale investors and the US spot BTC ETF issuers. On Monday, the US spot BTC ETF issuers registered a net cash inflow of about $987 million, thus negating the cash outflows recorded during the Christmas 2024 period.
Fidelity’s FBTC led in net cash inflows on Monday with a total of about $370 million, closely followed by BlackRock’s IBIT with a net inflow of about $209 million. Remarkably, none of the US spot BTC ETF issuers, even Grayscale’s GBTC, registered a net cash outflow on Monday, signaling a rising demand from institutional investors.
On Monday, MicroStrategy Inc (NASDAQ: MSTR) purchased 1,070 BTCs, worth about $101 million, thus currently holding 447,470 Bitcoins. More institutional investors are expected to follow in the footsteps of MicroStrategy after the Donald Trump administration enacts clearer crypto regulations.
Meanwhile, Bitcoin’s correlation with traditional stock indexes has remained positive in the past two months. With the rebound of the NASDAQ 100 and the S&P 500 indexes, Bitcoin price rallied in tandem.
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