As Trump speculation intensifies, Bitcoin traders look toward $109K, and BTC ETFs attract nearly $1B in investments.

Traders are speculating that Bitcoin is nearing the end of a technical correction and reversal, potentially setting the stage for a full-scale bullish rally.

As the markets reopen after the holiday break and with heightened anticipation surrounding Donald Trump’s impending inauguration as U.S. president, optimism for Bitcoin and the broader cryptocurrency market is growing. Over the past week, Bitcoin has gained 10%, reclaiming the $102,000 level late Monday, effectively reversing most of the losses it incurred in early December. The cryptocurrency had fallen from a peak of nearly $109,000 on December 17 to just under $92,000 by December 30, briefly raising concerns of a more significant downturn.

This rally is occurring in tandem with strong inflows into U.S.-listed Bitcoin exchange-traded funds (ETFs), which brought in $987 million on Monday, marking the highest daily inflow since November 21, according to data from SoSoValue. Fidelity’s FBTC led the inflows with $370 million, followed by BlackRock’s IBIT with $209 million, and Ark Invest’s ARKB with $71 million. Nine out of the 12 Bitcoin ETFs tracked by SoSoValue saw inflows, underscoring the growing investor confidence in the sector.

Trump’s anticipated cryptocurrency policies and broader economic agenda have contributed to the renewed positive sentiment, pushing Bitcoin’s price higher and signaling a potential rally in altcoins as well.

“We’re seeing strong demand for Bitcoin following a lackluster Federal Reserve outlook in late December, which dampened hopes for a year-end rally,” Jeff Mei, COO of crypto exchange BTSE, told CoinDesk via Telegram. “Now that traders are back from their holiday breaks, Bitcoin and other assets are seeing a renewed bullish trend as we approach Trump’s inauguration,” Mei added.

Several traders are targeting the $109,000 level as a short-term goal, with expectations that Bitcoin will continue its upward momentum, eventually pushing past this point to even higher levels.

“The current technical setup looks like a classic completion of a correction, with the market poised to resume its upward trajectory from the 61.8% Fibonacci retracement level of the November rally,” said Alex Kuptsikevich, Chief Market Analyst at FxPro, in an email. “If Bitcoin moves confidently past the $109,000 mark, it would confirm this bullish scenario. We also expect Bitcoin’s growth to accelerate once it clears the $100,000 threshold.”

Fibonacci retracement levels are a popular technical analysis tool used by traders to identify potential support and resistance levels where price movements may stall or reverse. Traders often monitor these levels, as they can act as self-fulfilling prophecies, triggering market reactions once certain thresholds are reached.

In the meantime, market volatility is expected to remain relatively subdued until the U.S. Nonfarm Payrolls (NFP) report is released on Friday, which some analysts believe will mark the beginning of the new trading year, as major market participants return to full activity, according to Augustine Fan, Head of Insights at SOFA.

Stronger-than-expected NFP data could strengthen the U.S. dollar, potentially leading to higher interest rates, which could negatively impact risk assets such as Bitcoin and stocks.

“However, the most significant volatility event this month is expected to be the Federal Open Market Committee (FOMC) meeting later in January, where data may indicate signs of a ‘soft landing’ for the economy,” Fan added.

As of Tuesday morning in Asia, Bitcoin is trading just above $101,600, up 2% in the past 24 hours. The broader CoinDesk 20 index, which tracks the largest cryptocurrencies by market capitalization, is up by 0.53%.