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Bitcoin surpassed the $100,000 mark, trading at around $102,000, a gain of more than 4% in a single day. This rally is driven by the “January effect,” as investors return from vacation and inject new capital into the market. Investors are also closely watching the upcoming inauguration of Donald Trump on January 20 and the departure of SEC Chairman Gary Gensler.
The rise of the crypto market is fueled by optimism surrounding Trump’s potential impact on the industry. Many investors hope he delivers on his promises to drive growth in the crypto space, notably by making the United States the global hub for crypto mining and making Bitcoin a reserve asset. Although the details of his plans remain to be known, for now, investors are celebrating Trump’s return to the White House.
Bitcoin ETFs are back in action
It’s not just Bitcoin that’s booming. Spot Bitcoin ETFs (exchange-traded funds) are also gaining momentum. After some hesitation during the holiday season, investors began investing in these funds again. On January 3, a total of $908 million was invested in Bitcoin ETFs, with Fidelity FBTC in the lead with $357 million in entries, followed by BlackRock IBIT with 253 million dollars.
Other major cryptocurrencies are also on the rise
In addition to Bitcoin, Ethereum’s native token, Etherrose more than 2% in a day, trading at around $3,600. Solana, Dogecoin and Cardano also saw gains, up 2.4%, 1.5% and 2%, respectively, reflecting growing optimism in the crypto market.
MicroStrategy buys 1,070 Bitcoins
The surge in Bitcoin price has also sent crypto stocks soaring. Crypto exchange Coinbase (COIN-8.90%) shares jumped 6.3%, while MicroStrategy (MSTR-10.63%) rose 5.5% following reports of its latest Bitcoin purchase. Today, the business intelligence firm purchased 1,070 pieces for approximately $101 million. This acquisition brings MicroStrategy’s total Bitcoin holdings to 447,470 coins, valued at $45.67 billion at the current price level.
