Bitcoin Inches Closer to $100K, Sparks Broader Market Rally Amid Optimism for Pro-Crypto U.S. Administration
Bitcoin (BTC) surged above $99,000 early Friday, coming within a whisker of the historic $100,000 milestone. Nearly 15 years after its creation, BTC is now just over 1% away from achieving this landmark. Prices briefly touched $99,200 before settling above $99,000 during Asian trading hours. The crypto market’s overall capitalization also reached a record $3.4 trillion, buoyed by a 4.5% increase in the past 24 hours, largely driven by BTC’s 2% gain, which now accounts for 56% of the total market cap.
Spot Bitcoin exchange-traded funds (ETFs) in the U.S. attracted over $1 billion in net inflows. BlackRock’s IBIT led the charge with $600 million in purchases, while Fidelity’s FBTC saw inflows of over $300 million. None of the 11 available ETFs reported any outflows, signaling robust investor confidence.
Altcoin Momentum Builds as BTC Strengthens
The rally in Bitcoin has triggered a rotation into major altcoins, fueled by optimism surrounding a crypto-friendly Trump administration set to take office in January.
- Ethereum (ETH): Up 9% in the past 24 hours, its growth has lifted DeFi-related indexes by 8% or more. Popular Ethereum-based memecoins like mog (MOG) and pepe (PEPE) have surged by as much as 27%, acting as high-beta plays on Ethereum’s momentum.
- Solana (SOL): Up 8%, SOL reached a new all-time high above $260, supported by ETF applications and its growing utility in speculative trading.
- Cardano (ADA): Soared by 12%, marking the second-highest gain among major cryptocurrencies after XRP.
- XRP: Led the market with a 25% surge, fueled by the announcement that SEC Chair Gary Gensler will step down in January, alleviating regulatory concerns for tokens associated with U.S.-based companies.
Market Outlook Remains Bullish
Analysts from QCP Capital emphasized sustained demand for Bitcoin, citing supportive monetary policy and strong investor sentiment. “The surge in March and June call options indicates long-term bullish outlooks into next year,” they noted.
Deribit’s BTC futures expiring in March, June, and September 2025 are already trading above $100,000. Additionally, open interest in BTC call options at the $100,000 strike has surpassed $2 billion, reflecting widespread expectations of further upside.
Despite the bullish sentiment, a temporary pullback from the $100,000 level may occur, as noted in previous CoinDesk analyses. The rally remains poised for continuation, driven by improving macroeconomic conditions and a favorable regulatory environment on the horizon.
