Anticipating A ‘2025 Super Cycle’: Bitcoin Rallies With Trump’s Regulatory Reforms On The Horizon

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For the first time in two weeks, Bitcoin (BTC) crossed the $100,000 mark, fueled by renewed energy following the anticipated confirmation of President Donald Trump’s re-election by Congress this week.

Based on Bloomberg’s figures, Bitcoin, the top cryptocurrency, saw an increase of approximately 4% in the last 24 hours, reaching a price point of $102,500 on Monday. This weekly growth marks a significant 11%, which is its most substantial rise since November 24.

Bitcoin Rally Resumes: Surges Past $100,000

2024 saw Bitcoin’s progress slow down towards the end of December, with investors looking to lock in their profits. However, renewed excitement about a pro-cryptocurrency administration under Trump has sparked fresh interest, pushing Bitcoin to a new all-time high of $108,000.

With Congress set to gather for Trump’s victory certification, there’s an upbeat feeling among investors. Khushboo Khullar, a partner at Lightning Ventures who specializes in Bitcoin-related businesses, predicts that a “super cycle” will occur around 2025 as a result of regulatory changes under the Trump administration.

An increased influx of investments towards Bitcoin Exchange-Traded Funds (ETFs) has significantly contributed to the current upward trend. Last Friday alone, investors poured approximately $908 million into U.S.-based Bitcoin ETFs.

This marked the fifth-largest inflow since their launch in January 2024, occurring after a record net outflow of $680 million on December 19.

As a researcher, I’ve found that a promising sign for Bitcoin traders is the resurgence of the Bitcoin Coinbase Premium. This indicator measures the difference in price between Bitcoin traded on Coinbase and Binance. A positive Coinbase Premium suggests that demand for Bitcoin on Coinbase is higher than on Binance, which can potentially signal an upward trend for Bitcoin prices.

After reaching its lowest level since the collapse of FTX in 2022, the increased desire for Bitcoin by U.S. investors is reflected in the recovering premium, suggesting an uptick in demand.

Joe McCann, as CEO of Asymmetric – a cryptocurrency investment firm based in Miami – noted that most ETF providers typically deal with Coinbase. This suggests that the level of demand for ETFs could potentially influence the pricing differences (premium or discount rates).

Key Support Levels Under Scrutiny

Looking ahead to the year 2025, Bloomberg indicates that Bitcoin’s trajectory could heavily depend on President Trump’s commitment to his promises regarding cryptocurrencies, including potential plans for a national Bitcoin reserve.

Despite ongoing optimism, questions remain about the durability of the current market surge. A recent MLIV Pulse poll found that 39% of respondents considered Bitcoin the riskiest investment for 2025, making it the top choice among options presented.

According to the tech analyst Morecryptoonl, Bitcoin appears to have arranged itself into a clear five-part pattern. If certain support points are broken, this formation could lead to a bearish trend continuing.

Currently, it’s necessary to sustain wave two, while wave one is technically concluded but expected to touch a minimum of $100,800. Important support levels have been identified between approximately $93,144 and $96,554. These levels may be tested once wave one’s peak is confirmed.

Regarding Bitcoin Exchange-Traded Funds (ETFs), Glassnode suggests that the buying pattern remains strong, due to seasonal factors. As Inauguration Day approaches, the research firm anticipates increased buying activity from conventional finance investors, which could potentially influence Bitcoin’s price fluctuations even more.

Currently, as I’m typing this, Bitcoin (BTC) appears to be moving back towards the $101,888 mark. However, it’s important to note that it continues to show substantial growth across various time periods.

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2025-01-07 13:34