Bitcoin Reaches $105,000

In a stunning turn of events, Bitcoin (BTC) reached an unprecedented price of $105,000 on Friday, marking its strongest valuation in U.S. dollars for 2025 and setting a new record against the British pound. This surge is largely fueled by heightened anticipation surrounding the incoming crypto-friendly U.S. administration under Donald Trump, who is set to be inaugurated next week.

Within just 24 hours, BTC surged by 5.2%, significantly boosting the CoinDesk 20 Index, which tracks the performance of major cryptocurrencies. While Bitcoin's rally was remarkable, other cryptocurrencies like NEAR and Litecoin (LTC) also kept pace, whereas Solana (SOL) and Ethereum’s Ether (ETH) saw modest increases around 3%. XRP, on the other hand, experienced a 4% decline after its recent highs, demonstrating the volatile nature of the current crypto market.

In parallel, crypto-related stocks are witnessing impressive gains. MicroStrategy (MSTR), the largest corporate holder of Bitcoin, saw its shares climb 7%, and Coinbase (COIN) gained 4.5%. Notably, Marathon Digital Holdings (MARA), one of the biggest bitcoin miners, enjoyed a 13% boost in its share price.

This dramatic upswing for Bitcoin follows a turbulent week in which the cryptocurrency dipped below $90,000 amid fears of a market correction. Since then, however, it has rebounded by 17%, spurred on by the easing of investor concerns regarding the U.S. Consumer Price Index (CPI) inflation report and the increasing speculation about Trump’s possible crypto initiatives.

Breaking through last week’s local high of $102,000, Bitcoin has shattered its multi-week downtrend. Alex Thorn, head of research at Galaxy, noted that overcoming the resistance level of $108,000 is the next key milestone to watch for bullish trends.

Recent ETF Activity Shows Strong Demand

Bitcoin ETFs have also seen a resurgence, with a combined net inflow of $1.381 billion in just two days—a significant reversal from the preceding days of outflows. Ether ETFs recorded nearly $166 million in inflows, marking the highest performance in over a month.

As markets prepare for Trump's inauguration on Monday, the crypto community is abuzz with expectations. Trump has pledged to position the United States as a global leader in the crypto space. Reports suggest that he aims to create a national stockpile of Bitcoin, a bold contrast to previous regulatory crackdowns.

Bloomberg revealed that Trump is expected to sign an executive order making digital assets a "national priority" while establishing an advisory council to guide policy recommendations. Polymarket traders now estimate a 38% likelihood that the U.S. will create a Bitcoin reserve within Trump's first 100 days.

John Glover, chief investment officer at crypto lender Ledn, emphasized the constructive technical picture for BTC as the Biden administration winds down. He cautiously noted that the only potential threat to Bitcoin's rally would be if Trump fails to follow through on his promises to implement more favorable regulatory policies for digital assets.

Glover’s wave theory analysis predicts Bitcoin could soar to $128,000 in the coming months, building on a five-wave pattern that signifies a larger bullish trend. He also cautioned that while breaking past the all-time high of $108,000 is critical, recent lows of $90,000 are less likely to be revisited given the current market momentum.

As we approach a potential watershed moment for Bitcoin and the cryptocurrency market, all eyes will be on Trump's inauguration and what it means for the future of digital assets in America. Will we witness a new era for crypto, or will regulatory challenges loom large? Only time will tell, but the excitement is palpable!