Bitcoin has shown renewed strength, reaching $97,000 as it concludes the first trading week on Wall Street in 2025. This development comes amid a rebound in Bitcoin exchange-traded fund (ETF) inflows, which have surged to six-week highs. Despite these gains, traders remain cautious about the short-term outlook, with some predicting potential price declines unless a $99,000 threshold is breached. The cryptocurrency managed to recapture its 50-day simple moving average, a key indicator for ongoing bullish trends, although skepticism persists regarding its ability to maintain this momentum.
Traders like Skew noted the strong performance, yet others such as Scient and Crypto Tony anticipate potential price retreats, eyeing resistance levels at $99,000 or potential dips to the $90,000 to $88,000 range. Daan Crypto Trades also expressed optimism for Bitcoin’s performance in the first quarter of the year, suggesting a generally bullish outlook despite potential short-term fluctuations.
Beneath this price action, US spot Bitcoin ETFs experienced a dramatic increase in inflows, amassing net investments of $908 million on January 3. The Fidelity Wise Origin Bitcoin Fund attracted a significant portion, with $357 million, while the iShares Bitcoin Trust secured $253 million. This resurgence in institutional interest followed a period of notable outflows towards the end of the previous year.
The Coinbase Premium Index, indicative of the price discrepancy on US-based Coinbase versus Binance, has rebounded from its 12-month low, suggesting US buyers could increasingly influence Bitcoin’s price direction. Analysts like Patric H highlighted this renewed buying interest as a sign of confidence following end-of-year sell-offs.
As the market continues to respond to these developments, the trajectory of Bitcoin in the coming weeks will offer further insights into its enduring strength and the evolving dynamics of institutional investments.
