Key Points
- Bitcoin trades above $100,000, nearing a market cap of $2 trillion.
- Recent CPI data, BTC ETF inflows, and optimism about upcoming BTC reserves fueled BTC’s recent rally.
Yesterday, Bitcoin kicked off a price rally that took the digital asset above $101,000.
BTC began its ascendant trajectory following the latest CPI data and was sustained by other factors, including optimism about the upcoming Trump administration and the establishment of BTC reserves in the US and beyond.
Bitcoin Price Holds Above $100,000
At the moment of writing this article, BTC is trading above $100,700, up by over 3% today.
The digital asset’s market cap is nearing $2 trillion in a race to overtake Google and become the 6th largest asset in the world by market cap.
Meanwhile, BTC ETFs in the US recorded their 10th inflow day on December 11.
BTC ETFs Inflows Surpass $4 Billion in 10 Days
On December 11, BTC ETFs recorded over $223 million in inflows, marking the 10th consecutive inflow day in the crypto products since November 27. During this period, BTC ETFs saw almost $4.3 billion in influxes, according to data from SoSoValue.
The total net assets locked in BTC ETFs surpassed $113 billion and the cumulative net inflow in the crypto products is over $34.5 billion since their January launch.
Strong inflows in BTC ETFs suggest continued interest in BTC and related products, despite a recent market turmoil triggered by a potential Microsoft rejection to consider investing in BTC following shareholders’ latest vote.
Besides the continuous inflows in BTC ETFs, BTC’s rally is also supported by optimistic prospects regarding the upcoming Trump administration in the US which will bring crypto-friendly policies and potential BTC reserves.
Upcoming US Strategic BTC Reserve
Today, Dennis Porter, Satoshi Act Fund’s CEO, shared a post via X, noting that in less than 24 hours, the fight for a Strategic BTC Reserve will hit a new stride.
He highlighted that nearly 5,000 RSVPs came in regarding implementing a BTC Reserve and the number continues to climb.
On December 10, he also said that the most important announcement regarding Bitcoin is on its way and it will speed up the timeline for global adoption.
Optimism About the Future of Bitcoin and Crypto
The upcoming Trump administration set to officially begin on January 20, 2025, will bring crypto-friendly policies and important names that will support the industry, including David Sacks and others.
Bitcoin’s recent rally is supported by the prospect of a potential upcoming interest rate cut by the Fed in the US.
The chances for a 25 bps rate cut on December 18 are nearing 99%, according to data from CME Group, following yesterday’s CPI report.
The stage seems perfectly set for a successful year-end for Bitcoin and the crypto market, paving the path for a bright future for the industry.
