The cryptocurrency market has been buzzing with excitement as Bitcoin nears the significant milestone of $100,000. Just shy of this key threshold, Bitcoin has been experiencing strong trading activity and impressive price movements over the past week.
According to recent data from CoinGecko, the total market capitalization of the cryptocurrency market surged by approximately 7.33% last week. Although there has been a slight pullback, with the overall market cap down 0.19% to $3.662 trillion as of recent reports, the optimistic sentiment remains palpable. Currently, the Crypto Fear & Greed Index, which reflects market sentiment, has jumped from 72 to 76, signaling the shift from 'Greed' to 'Extreme Greed' as investors grow increasingly hopeful for Bitcoin's performance.
Trading at approximately $99,118, Bitcoin has shown confidence with a 1.3% gain over the last 24 hours and an overall increase of 5.8% over the past week. Institutional interest seems to be playing a pivotal role, highlighted by inflows of approximately $907 million for Bitcoin Exchange Traded Funds (ETFs) reported on January 3.
Ethereum also remains popular within the altcoin arena, trading at $3,641 after a 6.7% increase over the last seven days, backed by recent ETF inflows of $58.9 million which have aided its climb. Ripple (XRP) is also making waves, rising by over 15% this past week to reach $2.38, reflecting the competitive nature of altcoin performance as USDT, Tether's stablecoin, fell behind XRP in market capitalization.
The current price action for Bitcoin shows bullish tendencies, but traders are watching closely. Bitcoin recently faced rejection near the $99,900 mark, having consolided under the monumental $100,000 level for three weeks. A breakthrough above this resistance could pave the way for new all-time highs, with estimates positioning the next target close to $108,000.
Market analysts are noting this will be Bitcoin's fourth attempt to reclaim the $100,000 territory since the Federal Open Market Committee's (FOMC) interest rate decision on December 18. Historically, each prior attempt to break through has led to retreats back toward support levels between $92,000 to $95,000.
Adding to market dynamics, the upcoming inauguration of President Trump could also serve as a catalyst for Bitcoin's next price movements, according to some analysts. Despite recent volatility, many remain cautiously optimistic about potential triggers from macroeconomic events.
While Bitcoin is capturing the spotlight and dominating the headlines, altcoins have had mixed reactions. Ethereum's slight gain of 0.8% suggests some resilience, yet many altcoins, including Dogecoin, Cardano, and Solana, experienced stagnation or minor declines during Bitcoin's rise. This phenomenon is common during bullish phases, reinforcing the notion of Bitcoin leading the pack.
Interestingly, SPX9000 (SPX) has emerged as one of the biggest winners among altcoins, demonstrating a staggering 14.1% rise within just 24 hours, contrasting starkly with the losses seen by Helium (HNT) and others like Dogwifhat (WIF) and Bonk (BONK), which registered declines of 3.6%, 3.5%, and 2%, respectively.
Investors and traders are holding their breath, nervously watching Bitcoin's price movements leading up to this significant resistance. There is great anticipation around whether Bitcoin can break this barrier or if it will retrace again, reflecting the emotional intensity within cryptocurrency trading.
With Bitcoin's price firmly perched at $99,674 according to data from exchange OKX and approximately €96,622 at Bitvavo, the battle for the coveted $100,000 level continues to be of utmost focus amid overall bullish trends.
If Bitcoin manages to break through this threshold, the next question will become what new heights it can achieve. Many observe the market closely, recognizing the potential for rapid movements and fresh opportunities if momentum builds.