Bitcoin on the Brink of $100,000: What Are the Latest Expectations?
Bitcoin (BTC) surged to $99,324 in the first week of 2025, marking a 6.9% increase. This rise has significantly reduced fears of Bitcoin falling below $90,000. The fear and greed index for Bitcoin reached 76%, indicating overwhelming optimism among investors in the market. However, the decrease in commentary regarding reaching the $110,000 level suggests that investors are maintaining a cautious stance.
Reduction in Bitcoin supply and ETF movements have been noted, as the supply of Bitcoin on centralized exchanges has decreased to 2.21 million, indicating the continuation of the cryptocurrency's macro upward trend. Meanwhile, Bitcoin ETFs displayed a mixed performance in the first week of 2025. Fidelity's ETF (FBTC) attracted $275.4 million in inflows, whereas Grayscale's GBTC fund faced $167.2 million in outflows. The total net flow for the week was $256 million.
Regarding Bitcoin scarcity and its effect on price, Bitwise CEO Hunter Horsley noted that Bitcoin's scarcity will become increasingly dramatic. It is estimated that there are about 58 million millionaires globally, and the current supply is only enough for one in three to own a Bitcoin. The total supply of Bitcoin is capped at 21 million, which is one of the key factors preserving the cryptocurrency's value. Current data shows that only 1.82% of all Bitcoin addresses hold a full Bitcoin, while 8.2% of addresses have more than 0.1 BTC. Only 0.25% of addresses hold more than 10 BTC.
Ripple CEO Brad Garlinghouse remarked that Donald Trump's second presidential term could signal the start of a new upward trend in the cryptocurrency sector in the U.S. He mentioned that due to renewed regulatory conditions in the U.S., Ripple has begun to secure more agreements, with 75% of new hires now occurring in the U.S. The innovation-focused approach of the Trump administration has injected new dynamism into the industry.
Looking ahead, analysts predict that if Bitcoin surpasses the $100,000 level again, the price could move towards $102,000 and then $105,000. However, if bears take control, the price could decline to $92,000. Therefore, volatility and careful risk management remain crucial in the Bitcoin market.