BTC Surges Past $100K as Crypto Market Momentum Builds in Early 2025

Altcoin majors, including ether and solana, surged significantly as U.S. markets resumed full operations in the first week after the holiday season, with the CoinDesk 20 index climbing 3.5% throughout the day.

Bitcoin (BTC) has reclaimed six-digit territory, continuing its strong start to 2025 on Monday. The largest cryptocurrency briefly approached $100,000 earlier in the session before decisively breaking above the threshold, gaining 2.5% within an hour as U.S. markets opened. At last check, BTC was trading around $102,000, marking its highest level since December 19 and reflecting a 4.3% gain over the past 24 hours.

The broader crypto market followed suit, with the CoinDesk 20 index rising 3.5% and all major cryptocurrencies posting gains. Ethereum’s ether (ETH) advanced 2.8% to $3,700, while Solana’s SOL surged 4.5% to cross the $220 mark.

After ending 2024 with a correction triggered by profit-taking and reduced trading activity during the holiday season, BTC hit a local low near $91,000 on December 30, reflecting a 15% drop from its peak. Outflows from spot BTC and ETH exchange-traded funds (ETFs) further contributed to the decline.

Renewed Demand Amid Stable Leverage

As traders returned from the holidays, headlines of significant BTC acquisitions boosted sentiment. MicroStrategy revealed a fresh purchase of 1,020 BTC, while KULR Technology Group, a Texas-based energy management firm, added $21 million worth of BTC to its treasury, effectively doubling its holdings.

Spot BTC ETFs recorded $908 million in inflows on Friday, signaling a resurgence in demand. Meanwhile, BTC futures open interest remains significantly lower on institutional platforms like CME, suggesting that the current price rally is driven by spot market activity rather than leveraged positions. Neutral funding rates across derivatives platforms, as indicated by CoinGlass data, further support this observation.

Macro Factors and Fed Influence

“After a period of year-end de-risking and balance sheet adjustments, we’re now seeing a return to positive price action and demand,” said Paul Howard, senior director at crypto trading firm Wincent, via Telegram. “While BTC surpassing $100,000 is significant, we should brace for heightened volatility in the weeks ahead.”

Crypto analytics firm 10x Research also predicted a crypto market rebound leading up to President-elect Trump’s inauguration but cautioned about potential selling pressure ahead of the Federal Reserve’s January meeting.

“The Federal Reserve’s stance remains a key risk factor,” said Markus Thielen, founder of 10x Research. “Even if inflation continues to decline, it may take time for the Fed to formally adjust its policy outlook.”

Thielen added, “While optimism is warranted at the start of the year, we shouldn’t expect the same bullish fervor seen in early 2024 or late last year.”