Analytics platform CryptoRank revealed that Bitcoin’s price has surged by 6% since the beginning of the year. The research firm also reported a surge in XRP (+16%), $ADA (+25%), $XLM (+32%), SUI (+26%), and other L1 assets.
The analytics platform also revealed that Bitcoin’s market capitalization rose by 0.48% to reach $3.74T. The data also indicated that BTC’s dominance rose by 0.44%, and the Fear & Greed index rose to 76, indicating extreme market greed.
Bitcoin retakes $100k once again
Bitcoin began the year with strong momentum, reaching the $99,765 mark and gaining over 6% in price appreciation. The upsurge in price has renewed investor optimism, but selling pressure continued to cap the price below the psychological $100,000 level until today, as BTC just broke just reclaimed $100k.
CryptoQuant CEO Ki Young Ju believes that old whales could be the reason for BTC’s plunge in price at such a critical time in the cycle. Young revealed in a recent analysis that veteran BTC holders have been offloading significant amounts of BTC. He noted that over-the-counter (OTC) transactions are playing a major role in the recent selling pressure.
Ki Young Ju believes the controlled selling strategy indicated a calculated approach by seasoned investors balancing profit-taking with market stability.
Friend: Who the f*ck is selling #Bitcoin now?
Me: Old whales. High OTC volume and exchange deposits, but they won’t crash the market, imo.
Buying pressure is mainly from U.S. institutions on Coinbase, but daily premium is at a 2-year low. Needs recovery for the next leg up. pic.twitter.com/6VlJvCMFbz
— Ki Young Ju (@ki_young_ju) January 2, 2025
Over the past few weeks, BTC’s market dynamics have shifted from extremely bullish to concerns about a possible correction. At the moment, the cryptocurrency has reclaimed an optimistic outlook as investors celebrate the $100k resurgence.
Young also disclosed that buying pressure is stemming from U.S. companies like Coinbase. Yet, there’s a stipulation that the firm’s daily premium, which is a key indicator of institutional demand, is at a two-year low. Young believes it suggests that although institutional players are involved, they still don’t have enough momentum to propel Bitcoin toward its next major rally.
The CEO emphasized the need for BTC’s institutional demand to maintain an upward momentum in 2025. He believes this will allow Bitcoin to break through resistance levels and continue pushing higher.
Crypto moguls expect Bitcoin to respect current support
Bitcoin’s price just crossed $100k at the time of publication, instilling cautious optimism among investors. Investors view this level as pivotal in BTC’s price action, expecting a potential push toward the ATH. A breakout above the $100k level is crucial as it will ignite a decisive upward trend that could set the stage for new all-time highs.
The last day of 2024 saw Bitcoin retest the $92K range, which was a key demand level. Once the year began, BTC respected the support level and soared higher. However, CryptoQuant’s head of research, Julio Monero, revealed on-chain data suggesting that Bitcoin’s price could reach the $80K mark if it fails to hold.
Monero suggested that the $80K mark is the point with unrealized profits, which means traders have little incentive to sell further at those levels. Monero’s analysis indicated that traders have locked in profits, but persistence in demand and bullish market sentiment may not actually result in a sharp correction to the $80K mark.
Institutional buying, led by Microstrategy, was one of the key drivers behind Bitcoin’s rise in 2024. The company acquired more than 423,650 BTC by the end of last year. After each public announcement, the firm’s former CEO, Micheal Saylor, inspired confidence among retail and institutional investors.
Saylor teased a Monday Bitcoin purchase with a picture of the SaylorTracker, a viral graph that tracks the firm’s buys. The company is sitting on $44B worth of BTC as of Monday, and a $2 billion capital raise is expected in its announced “21/21 Plan in the first quarter of 2025.”
The company stated that its decision on whether to proceed with and consummate the offering is subject to market conditions.
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