Bitcoin has surged past $102,700, reaching its highest point in three weeks. After dipping below $93,000 just a week ago, Bitcoin has made an impressive recovery, rising more than 9% this week. This price jump is sparking hopes that Bitcoin might soon reach its previous all-time high of $108,000.
Reasons Behind Bitcoin’s Price Surge
One of the key factors driving Bitcoin’s rise is the decision by major players like MicroStrategy and Metaplanet to buy more BTC. On January 6, MicroStrategy announced it had recently purchased 1,070 BTC for $101 million.
While this is smaller compared to their previous multi-billion-dollar buys, it’s still considered a positive signal for Bitcoin’s market outlook.
Currently, MicroStrategy holds a total of 447,470 BTC, which was acquired for approximately $27.97 billion, with an average purchase price of $62,503.
In a similar move, Japanese investment firm Metaplanet is also increasing its Bitcoin holdings. They plan to boost their stash to 10,000 BTC, a five-fold increase from their current holdings.
Metaplanet has been actively acquiring Bitcoin throughout 2024, including a recent purchase of 619.7 BTC on December 23.
Gemini $5M Settlement With CFTC
In addition to this, Gemini announced a settlement of a 2022 lawsuit with the Commodity Futures Trading Commission (CFTC). The exchange paid a $5 million fine without admitting to any wrongdoing over Bitcoin price manipulation claims. While this legal matter is ongoing, it hasn’t stopped the market from rallying.
Bitcoin ETFs witness MAssive inflows
Moreover, Bitcoin ETFs have seen massive inflows recently according to Farside. On January 3, U.S. spot Bitcoin exchange-traded funds (ETFs) registered a huge $908 million in inflows. This was followed by another large inflow on January 6, totaling $978.6 million.
Leading the charge are firms like Fidelity, BlackRock, and Ark Investment, which have been investing millions in Bitcoin ETFs. These inflows are seen as a sign of growing institutional confidence in Bitcoin.
What Next For Bitcoin?
With Bitcoin’s price rising by 3.2% in the last 24 hours, reaching $101,669, investors are now looking for Bitcoin to break past $105,000. If Bitcoin can hold above this level, it could move closer to its all-time high of $108,384, making this recent surge even more significant.
As Bitcoin recovers from weeks of lower momentum, its upward movement could continue, keeping the market excited about what’s next.
