Bitcoin returns to $100,000, is the rise in the altcoin market finally coming?

Author: shaofaye123, Foresight News

Just entering 2025, Bitcoin once again exceeded the $100,000 mark, and the market seemed to be gradually recovering amid shocks.

At around 10 pm on January 6, the price of BTC rose to exceed US$100,000 and is now hovering around US$102,000. ETH also quickly rebounded above $3,600. The good news continues, BTC’s daily line has closed positive for 7 consecutive days, and the market seems to be gradually becoming optimistic. What is happening in the market?

BTC market data is improving

Bitcoin spot ETF data is one of the important reference indicators for observing OTC capital inflows. Looking back at December, according to SoSoValue data, inflows continued to be positive in the first half of the month, but the performance in the second half was unsatisfactory. Since January, Bitcoin ETF spot has once again achieved net inflows. Currently, its total net asset value reaches US$111.46 billion. The ETF net asset ratio (market value as a percentage of Bitcoin’s total market value) reaches 5.72%. The historical cumulative net inflow reaches US$35.91 billion. .

Various institutions have increased their holdings of BTC

On January 3, according to official news from MicroStrategy, it will raise US$2 billion through the issuance of preferred shares in the first quarter to buy more BTC. This laid the foundation for increased buying of BTC. According to Bitwise CEO Hunter Horsley: “According to HODL15Capital statistics, 11 listed companies have purchased more Bitcoins since last Monday. In 2025, a large number of companies will join the Bitcoin standard. Michael Saylor for a movement Developed a script.”

MicroStrategy has been buying Bitcoin for nine consecutive weeks. On January 6, it once again increased its holdings of 1,070 Bitcoins for approximately US$101 million, with an average price of US$94,004. Its current holdings have reached 447,470 BTC, with a total holding of approximately US$44.3 billion.

According to Bitcoin mining company MARA Digital, it will continue to increase its holdings of Bitcoin on its balance sheet in 2025. Its current holdings are approximately 44,000 BTC, worth more than US$4 billion. The US-listed company KULR has currently increased its holdings of 213.43 BTC, and its current holdings have reached 430.61 BTC.

Japanese company Metaplanet plans to increase its Bitcoin holdings to 10,000 in 2025 to expand Metaplanet's influence in Japan and the Bitcoin ecosystem.

According to Cointelegraph, El Salvador has also increased its holdings of 5 BTC since the New Year, bringing its total holdings to 6,009 BTC, worth approximately US$595 million. Major institutions around the world have increased their holdings of BTC, and the buying power of BTC continues to increase.

Trump’s concept Memecoin is seeing gains, and the altcoin sector

continues to pick up

Since Trump's successful election in early November, the market has experienced a month-long rise. In the early morning of January 7, the U.S. Congress officially confirmed Trump's election as president. As he was about to take office, related encryption projects and related tokens once again attracted attention.

Trump's concept Memecoin TRUMP has been rising for three consecutive days since January 4, with an increase of more than 80%; Memecoins such as MAGA and TRUMPCOIN have all experienced gains of nearly 100%, but fell back yesterday. However, the holding currencies of its family project World Liberty Financial, such as LINK, AAVE, ENA, COW and other tokens, have not increased significantly.

Trump’s crypto-friendly attitude has been a big factor in the market’s recent optimism. However, according to Reuters, Michael Rosen, chief investment officer of Angeles Investments, said that Trump’s inauguration may also bring some surprises to the market. He is expected to issue at least 25 executive orders on his first day in office, ranging from immigration to Energy and cryptocurrency policy, among other issues.

At present, the crypto market sentiment has entered a relatively optimistic state, and the altcoin sector is still continuing to rebound. According to Alternative.me data, the cryptocurrency fear and greed index has gradually risen above 70 since January. Today, the index reached 78, indicating that the market has turned into an "extreme greed state."

Compared with Bitcoin’s rapid progress, the altcoin sector has experienced mixed gains and losses. In the 24-hour increase, the public chain sector SOL once again exceeded 220 USDT to achieve an increase, AVAX achieved an increase of approximately 6%, and the growth of other public chains stagnated. SUI fell back to 5 USDT after hitting a new high, and TON fluctuated around 5.7 USDT.

The Ethereum ecosystem, including DeFi, re-pledge, L2, stablecoins and other sectors, also experienced short-term corrections. EIGEN fell slightly after rising for 3 days in a row, LDO fell by about 3%, ENA saw a sharp correction of about 10%, OP, ARB, etc. There was also a slight decline after closing positive for 5 consecutive days.

Technology Spring Festival Gala CES is held, and the AI ​​concept is

getting good news again

"Technology Spring Festival Gala" CES 2025 (International Consumer Electronics Show) will kick off in Las Vegas, USA from January 7th to January 11th. During the exhibition, technology giants such as Nvidia, AMD, Toyota and Samsung will all appear and release their latest products and strategic plans for consumers.

Against this background, U.S. stocks rose favorably on January 6, with the Dow rising by more than 380 points, the Nasdaq rising 2% and then falling back, and the chip index once rising by more than 4%. The "Seven Sisters of Technology" achieved general gains. Meta closed up 4.23%, Nvidia rose 3.43%, Google A rose 2.65%, Amazon rose 1.53%, Microsoft rose 1.06%, Apple rose 0.67%, and Tesla rose 0.15%.

As Nvidia CEO Jensen Huang will deliver an opening speech on January 7, Nvidia's stock price has risen for three consecutive days and hit a new high. According to market news, Huang Renxun may officially launch the new generation of GeForce RTX50 series graphics cards in his speech, including RTX5090, 5080 and 5060.

In the encryption market, AI application coins are generally rising, and AI Memecoin is still rising. WLD increased by more than 10% in 24 hours, RENDER increased by 8%, and IOTA increased by 6%. In 24 hours, except for VIRTUAL, ZEREBRO, FARTCOIN, etc., which fell slightly, the others all rose. SWARMS is approaching a market capitalization of 500 million, achieving an increase of over 80%. AI16Z reached 2.25 USDT, an increase of more than 25%. GRIFFAIN, ARC, etc. all rose by more than 20%, and AIXBT also rose to above 0.55 USDT again.

What analysts think

In early February 2024, Markus Thielen, founder and research director of 10X Research, said, “Bitcoin tends to rise by 11% around the Lunar New Year.” In the past 9 years, traders have bought Bitcoin 3 days before the start of the Lunar New Year. Even if you sell Bitcoin 10 days after the start of the Lunar New Year, you will get good profits. The Spring Festival in 2025 will be January 29, which is earlier than previous years. The market performance is worth looking forward to.

Ledn chief investment officer John Glover said Bitcoin could fall back to $89,000 before rebounding to $125,000 by the end of the first quarter and hitting $160,000 by the end of this year or early next year.

Bitfinex released a report saying, "We see that the market remains strong. Although a deeper correction may occur in the first quarter of 2025, the bullish sentiment among miners and the overall tightening of supply indicate that Bitcoin has good upside potential in the medium term "The overall selling pressure from miners, long-term holders, and other groups has eased significantly, easing the impact of the recent pullback."

Bernstein analysts released ten predictions for the encryption industry in 2025, saying that "the encryption industry will enter an "infinite era". The Bitcoin price target in 2025 is US$200,000, the size of the stablecoin market will exceed US$500 billion, and there will be a net inflow of spot Bitcoin ETFs. Funding will exceed US$70 billion, and the integration of encryption and artificial intelligence will further deepen. "

But some analysts have expressed concerns about the market.

QCP said, "A large-scale short squeeze is not expected to occur in the short term, and Trump-related catalysts may not appear until after the inauguration on January 20."

BitMEX co-founder Arthur Hayes stated in his latest blog post "Sasa" that he believes the encryption market will peak in mid-March and then experience a severe correction. It recommended investors sell late in the first quarter and wait for liquidity conditions to improve in the third quarter.