Bitcoin, the first and largest cryptocurrency by market capitalization, is edging closer to $100,000 for the first time in 2025, following a remarkable six-day gain. Bitcoin has had a phenomenal start to the year, gaining traction as positive optimism spread throughout the cryptocurrency market.
At the time of writing, Bitcoin is trading up 1.27% in the last 24 hours to $99,021 after reaching intraday highs of $99,888, just shy of the $100,000 mark. Bitcoin began to rise from lows of $91,887 on Dec. 31 and has continued into the new year; Bitcoin has marked six straight days of gains since this date and would mark its seventh, assuming today closes in green.
Bitcoin touched record highs of $108,268 on Dec. 17, 2024. However, the rally faded shortly thereafter, likely due to year-end profit-taking and hawkish Fed rate predictions.
As Bitcoin makes another push beyond $100,000, expectations are rising in the cryptocurrency market.
According to crypto analyst Michael Van de Poppe, “Bitcoin is grinding upwards to the crucial breakout level,” and a break above $100,000 might result in a new ATH in January.
What’s happening?
MicroStrategy, a Bitcoin development firm, intends to raise $2 billion in preferred stock offerings in the first quarter of 2025 to fuel additional Bitcoin purchases. Metaplanet, a Japanese investment firm, also announced plans to buy 10,000 BTC.
MicroStrategy could announce a fresh Bitcoin purchase today, Monday, according to a teaser tweet from cofounder Michael Saylor. Since late 2024, Saylor has tweeted a chart of the SaylorTracker about a day before disclosing new purchases, causing BTC prices to rise in anticipation but then fall when official announcements are made.
On the macroeconomic front, investors will be watching intently as officials meet again in January to make monetary policy decisions. The CME FedWatch Tool reports that traders on the Fed funds futures market predict a pause in rates at the next meeting. In December, the Federal Reserve dropped interest rates by a quarter percentage point but stated that there would be fewer rate cuts in 2025.
