Bitcoin Surges Back to $100K: A Strong Start to 2025
January 16, 2025 BACK TO NEWS
Bitcoin surges back above $100K in January 2025, fueled by favorable policies and inflation trends - IcoHolder.
Bitcoin made an impressive comeback yesterday, surging back into the $100K range after posting a 4.06% gain in just one day. The cryptocurrency has already risen by 6.65% since the start of 2025, outpacing the broader crypto market, which has seen a growth of just 2.9% in the last 24 hours.
This strong rally follows Bitcoin's December 2024 highs, when it first crossed the $100K threshold and reached an all-time high (ATH) of $108,369.05 on December 17. However, by the end of the year, Bitcoin's price had dropped to $93,552.66, about 13.67% below its ATH. The start of 2025 saw a solid 9.30% gain, pushing Bitcoin back above the $100K mark. Despite a 9.4% market correction between January 7 and 9, Bitcoin rebounded quickly, reaching $100K again by mid-January.
Several factors are contributing to Bitcoin’s strong rally and the overall positive sentiment in the market.
Trump’s Inauguration and Crypto-Friendly Policies
With Donald Trump set to take office as U.S. president on January 20, 2025, many crypto enthusiasts are optimistic about the potential for regulatory changes that could support the industry. Trump's administration is expected to introduce policies that may be more favorable to the growth of the cryptocurrency market, providing an additional boost to Bitcoin's price.
Lower Inflation Fuels Optimism
The U.S. core inflation rate saw a slight drop in December 2024, from 3.3% to 3.2%. This decline has led to speculation that the U.S. Federal Reserve could ease its hawkish stance on interest rates, potentially creating a more favorable environment for Bitcoin and other assets in 2025.
Middle East Ceasefire Brings Stability
Another key factor influencing Bitcoin’s growth is the ceasefire and hostage agreement between Israel and Hamas, announced on January 15. The agreement is expected to bring stability to the region after one of the most disastrous conflicts in modern history, further boosting investor confidence in global markets, including Bitcoin.
Growing Confidence Among Bitcoin Whales
The rise in the number of Bitcoin wallets holding 10 or more BTC indicates growing confidence among major Bitcoin holders, known as whales. This trend suggests that larger investors are backing Bitcoin despite a reduction in smaller wallets, a typical indicator of a market rally.
Bitcoin’s resurgence above $100K signals a strong beginning to 2025, bolstered by favorable macroeconomic conditions and positive on-chain signals. As the year progresses, Bitcoin looks well-positioned to continue its upward trajectory.