Bitcoin Targets $109K as Trump Anticipation and ETF Inflows Fuel Bullish Sentiment
Bitcoin (BTC) has surged 10% in the past week, reclaiming the $102,000 level late Monday and reversing nearly all losses from early December. Analysts suggest a technical correction is nearing completion, potentially setting the stage for a bullish breakout toward $109,000.
ETF Inflows Hit $987 Million, Driving Optimism
The recent price rally coincides with significant inflows into U.S.-listed spot Bitcoin ETFs, which collectively attracted $987 million on Monday—their largest single-day inflow since November 21, according to SoSoValue data.
Leading the inflows were:
- Fidelity’s FBTC with $370 million
- BlackRock’s IBIT with $209 million
- Ark Invest’s ARKB with $71 million
A total of nine out of twelve ETFs recorded inflows, with no outflows, marking a strong vote of confidence from institutional investors.
Market Sentiment and Trump’s Pro-Crypto Policies
Anticipation surrounding Donald Trump’s inauguration and expectations of crypto-friendly policies have fueled renewed optimism in the market. Traders are viewing this political shift as a potential catalyst for broader adoption and regulatory clarity.
“Bitcoin demand is rebounding after the Federal Reserve’s cautious outlook in late December temporarily paused the market rally,” said Jeff Mei, COO of crypto exchange BTSE, in a message to CoinDesk.
“Now that traders are back from holiday breaks, they’re resuming bullish bets across Bitcoin, crypto, and stocks ahead of Trump’s policy announcements,” Mei added.
Technical Setup Points to Bullish Breakout
Analysts are targeting the $109,000 resistance level as a short-term milestone, with further upside likely if this threshold is breached.
“The technical setup mirrors a classic correction phase followed by a resumption of growth from the 61.8% Fibonacci retracement level of the November rally,” noted Alex Kuptsikevich, chief market analyst at FxPro.
Kuptsikevich emphasized that a decisive move above $109,000 would confirm the bullish scenario and could accelerate gains as Bitcoin stabilizes above the $100,000 psychological mark.
Fibonacci levels, widely used in technical analysis, help traders identify potential support and resistance zones—a tool that can influence price movements due to its predictive reputation.
Key Economic Events to Watch
Market volatility is expected to remain relatively low until the release of the U.S. Nonfarm Payrolls (NFP) report on Friday, which some analysts believe could act as a catalyst for the next big move in Bitcoin and equities.
Strong NFP data may bolster the U.S. dollar and raise expectations of higher interest rates, potentially weighing on risk assets like cryptocurrencies and stocks.
“Still, the most impactful event this month could be the FOMC meeting at the end of January,” said Augustine Fan, head of insights at SOFA. “Economic data is expected to point to a soft landing, which could influence Fed policy and drive further market action.”
Bitcoin Price Update
As of Tuesday morning in Asia, Bitcoin traded at $101,600, reflecting a 2% gain over the past 24 hours. Traders remain focused on the $109,000 target as momentum builds toward the first major test of resistance in 2024.
