Bullish sentiment towards Bitcoin and the broader crypto market is growing as the market returns after the holidays and expectations for Donald Trump's inauguration as US President.
The asset has risen 10% over the past week, regaining the $102,000 level late Monday, recouping nearly all its losses since early December. It fell from a high of about $109,000 on Dec. 17 to a local low of just under $92,000 on Dec. 30, temporarily raising fears of further economic downturn.
The surge was driven by the U.S.-listed Spot Bitcoin exchange-traded fund (ETF), which raised $987 million on Monday, its highest amount since Nov. 21, according to SosoValue data. .
Fidelity's FBTC topped the list with $370 million in inflows, followed by BlackRock's IBIT with $209 million and Ark Invest's ARKB with $71 million. Nine of the 12 ETFs recorded inflows, but none of this cohort showed outflows on any notable days.
President Trump’s expected crypto policy and broader economic plan have revived positive sentiment among traders, pushing BTC prices higher as is the usual precursor to an altcoin rally.
“Bitcoin demand emerged after the Fed’s lackluster outlook put a brake on the Santa Claus rally in late December,” Jeff May, COO of cryptocurrency exchange BTSE, told CoinDesk in a Telegram message on Tuesday. We believe there are,” he told CoinDesk.
“Now that traders have returned to work after the holidays, they have resumed buying Bitcoin, cryptocurrencies, and stocks, which are trending bullish as President Donald Trump’s inauguration approaches,” May added. .
Some traders are targeting the $109,000 level in the short term before the bullish trend is confirmed, setting the stage for further highs.
“So far, the technical situation is typical of a resumption of the rally from the Fibonacci retracement level of 61.8% of the rally since early November,” Alex Kupczykevich, chief market analyst at FxPro, said in an email. It appears that all adjustments have been completed.” “A solid breakout of historic highs around $109,000 would confirm this scenario. At the same time, we expect Bitcoin growth to accelerate above $100,000.”
Fibonacci levels are a technical analysis tool for identifying potential support and resistance points where price movements may pause or reverse. Some traders believe that tracking Fibonacci levels can provide predictive value in identifying key price levels. This can become a self-fulfilling prophecy that causes a price reaction in the market.
As such, market volatility is expected to remain low until Friday's US Nonfarm Payrolls (NFP) report, which marks the start of the new trading year as “decision makers fully return to work.” The people in the department believe (Mr. Augustine Huang, director of the department) Insights from SOFA.
Strong NFP data could strengthen the US dollar and lead to higher interest rates, which could have a negative impact on risk assets such as stocks and Bitcoin.
“However, the most volatile event this month is expected to be the FOMC meeting at the end of the month, as economic data is priced to show signs of a 'soft landing' soon,” Huang added.
BTC was trading just above $101,600 in Asia mid-morning Tuesday, up 2% over the past 24 hours. The broader CoinDesk 20 (CD20), a liquidity index that tracks the largest tokens by market capitalization, rose 0.53%.
