Bitcoin (BTC) surged past $100,000 as it continued its upward momentum in the new year. The cryptocurrency went from a low of $98,760 to $102,413 late on January 6 before dropping marginally to its current level of $101,745. BTC is up almost 2.50% over the past 24 hours, with its market cap exceeding $2 trillion. BTC’s latest surge is being driven by institutional interest, reduced selling pressure, and growing adoption.
Meanwhile, Ethereum (ETH) has underperformed, with its price marginally down after failing to stay above $3,700, and is currently trading around $3,670. However, AI tokens like Render (RNDR), FET, and INJ have recorded double-digit gains. The crypto market cap is currently up 1.25% and is at $3.58 trillion.
Bitcoin (BTC) Gets Institutional Boost
Bitcoin (BTC) is witnessing another rally that has taken it well past the $100,000 mark, with market watchers hoping this is the breakout that propels BTC beyond $110,000. Institutional investors are playing a crucial role in fueling this rally, with MicroStrategy announcing plans to raise $2 billion for more BTC purchases. The company has stated it intends to purchase $21 billion worth of BTC by 2026 and already holds BTC worth $44 billion, boosting market confidence.
“@MicroStrategy targets up to $2 billion capital raise through public offerings of perpetual preferred stock in the first quarter of 2025.”
Japan’s Metaplanet has outlined similar plans and intends to hold 10,000 BTC by the end of 2025. According to the firm’s CEO, its focus on leveraging financial tools and strategic partnerships has helped the company position itself as a major player in BTC adoption. Spot Bitcoin ETF inflows have also reported a significant jump in the new year, signaling renewed investor enthusiasm. January 3 saw ETF inflows worth $900 million. However, trading volume remains low.
AI Tokens Surge
AI tokens took a significant step towards the $55 billion market cap as market watchers hinted at growing demand in 2025, suggesting the crypto AI sector will retain its position as one of the most in-demand niches in the crypto ecosystem. AI tokens have surged to a market capitalization of $54.6 billion after registering an increase of 3% in the past 24 hours. Significant advancements in OpenAI’s ChatGPT and NVIDIA (NVDA) have spurred global investments in AI technology. The growth is being led by advanced players like Fetch.ai, Render (RNDR), and NEAR Protocol. New players like AI16z, a memecoin that combines AI narratives and blockchain, are also gaining traction.
Michael Barr Leaves Fed Vice Chair Role
Michael Barr, the Federal Reserve’s Vice Chair for Supervision, resigned on Monday, leading to a positive reaction from crypto advocates wanting more crypto-friendly policies. Barr announced he will step down on February 28 but remain on the Federal Reserve Board of Governors. Barr’s exit came after discussions among advisors of President-elect Donald Trump about a possible demotion. Trump’s advisors were considering removing Barr from his role as Vice Chair for Banking Supervision, a move that could have triggered a major legal battle and threatened the Fed’s independence from the White House. Barr released a statement stating,
“The position of vice chair for supervision was created after the Global Financial Crisis to create greater responsibility, transparency, and accountability for the Federal Reserve’s supervision and regulation of the financial system. The risk of a dispute over the position could be a distraction from our mission. In the current environment, I’ve determined that I would be more effective in serving the American people from my role as governor.”
Meanwhile, Senator Cynthia Lummis was highly critical of Barr, blaming him for Chokepoint 2.0, as she criticized the strict oversight of the crypto sector.
“Michael Barr has completely failed to fulfill his duties as Vice Chair for Supervision at every turn, enabling Operation Chokepoint 2.0 and illegally increasing his power at the cost of Wyoming’s digital asset industry.”
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) surged past $100,000 on Monday as its New Year rally showed no signs of slowing down. Market watchers hope BTC can sustain momentum and move beyond its all-time high to $110,000, a significant price level. The cryptocurrency registered an increase of over 3% to reach an intraday high of $102,560 before declining to its current level. The surge is being driven by renewed institutional activity, with MicroStrategy raising $2 billion to finance the purchase of BTC. Others like the KULR Technology Group, CleanSpark, and Metaplanet, have also increased their BTC holdings.
BTC faced considerable selling pressure during the last week of December as bearish sentiment dominated the market. The price slipped below the 50-day SMA on December 27 and continued to drop over the weekend, ending Sunday (December 29) at a low of $92,740. BTC continued to drop on Monday, as it started the previous week with a drop of 0.91%, but not after falling to an intraday low of $91,279. However, sentiment changed on Tuesday as BTC surged to an intraday high of $96,159. Despite the strong momentum, BTC could not go above the 50-day SMA and dropped to $93,383, an increase of 0.82%.
Source: TradingView
Buyers retained control on Wednesday as BTC rose to $94,376 after an increase of just over 1%. Bullish sentiment intensified considerably on Thursday as BTC registered a rise of 2.59% and pushed above the $95,000 and 50-day SMA to settle at $96,822. The price continued to go higher on Friday, going above the 20-day SMA after registering an increase of 1.09% and settling at $97,878. Buyers retained control over the weekend as BTC registered a rise of 0.21% on Saturday and 0.24% on Sunday to settle at $98,312. BTC started the current week with a substantial increase of 3.98% as it surged past $100,000 to settle at $102,228, with market watchers hopeful BTC can build on recent momentum and push to $110,000. However, the price is marginally down during the current session, with BTC trading around $101,979.
While BTC has been bullish since the beginning of the year, it faces several risk factors. The Federal Reserve’s hawkish stance continues to cast a shadow over crypto and other risk assets. Renewed concerns about inflation could significantly impact market sentiment. Retail partition has also declined, with transactions under $10,000 showing a substantial decline.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has seen its momentum stall around the $3,700 mark as selling pressure forced the price down from an intraday high of $3,744 on Monday. ETH started the previous week on a very volatile note as buyers and sellers struggled to establish control. As a result, ETH fell to an intraday low of $3,298 and rose to an intraday high of $3,433 before settling at $3,358. Buyers pushed ETH to an intraday high of $3,448 on Tuesday before losing momentum. As a result, ETH fell to $3,333, registering a drop of 0.74%. Buyers returned to the market on Wednesday as ETH rose by 0.69% to $3,356. Buyers retained control on Thursday as the price rose almost 3% to $3,452. Bullish sentiment intensified considerably on Friday as ETH surged past the 20 and 50-day SMAs and $3,500, registering an increase of 4.51% and settling at $3,607.
Source: TradingView
The weekend started positively as ETH continued to push higher, registering an increase of 1.37% and settling at $3,657. However, buyers lost momentum on Sunday thanks to resistance around $3,700. As a result, ETH dropped 0.61% and settled at $3,634. Buyers returned to the market on Monday as ETH registered an increase of 1.46% and settled at $3,687. However, once again, it failed to cross $3,700, and found itself in the red during the current session, down 0.42% and trading around $3,672.
Solana (SOL) Price Analysis
Like ETH, Solana (SOL) has also stalled over the past few sessions after facing significant resistance around the $220 price level. SOL started the previous week on a positive note despite considerable volatility, registering an increase of almost 1% and settling at $191. The price surged to an intraday high of $199 on Tuesday as buyers attempted to cross $200. However, it lost momentum at this level and dropped to $189, registering a drop of just over 1%. SOL registered an increase of 2.62% on Wednesday and settled at $194 as buyers returned to the market. Bullish sentiment increased substantially on Thursday as SOL surged past the 20-day SMA and $200 after registering an increase of over 7% and settled at $208.
Source: TradingView
Buyers retained control on Friday as SOL rose almost 5% to $217. However, it lost momentum over the weekend, dropping by 0.56% on Saturday and 1.52% on Sunday to settle at $213. The current week began positively for SOL as it raced to an intraday high of $223, briefly going above $220 and the 50-day SMA. However, it could not stay at this level and dropped to $218, below the 50-day SMA. The current session sees sellers in control, with SOL down just over 1%. If sellers retain control, SOL could drop to $200.
Algorand (ALGO) Price Analysis
Algorand (ALGO) experienced significant volatility at the beginning of the previous week as buyers and sellers struggled to establish control. Buyers ultimately gained the upper hand as ALGO registered an increase of 0.92% and moved to $0.328 on Monday. Buyers retained control on Tuesday but could only push ALGO up marginally to $0.333. Bullish sentiment intensified on Wednesday as ALGO surged past the 20 and 50-day SMAs after an increase of almost 13% and settled at $0.376. Thursday saw the price register rise nearly 4% and move to $0.391 as buyers looked to push ALGO above $0.40.
Source: TradingView
ALGO surged over 7% on Friday, moving past $0.40 and settling at $0.418. However, it lost momentum over the weekend, dropping 2% on Saturday and 1.32% on Sunday to settle at $0.405. Buyers returned to the market on Monday as ALGO registered an increase of 2.47% and settled at $0.415. The current session sees ALGO marginally up as buyers look to push it above the resistance level. However, Sellers could drive ALGO below $0.40 if buyers lose momentum.
Hedera (HBAR) Price Analysis
Hedera (HBAR) slipped below the 20-day SMA on Sunday (December 29) after registering a drop of almost 5% and settling at $0.279. Buyers and sellers struggled to take control on Monday as HBAR faced considerable volatility before settling at $0.278 after a marginal decline. Sellers reinforced control on Tuesday as the price dropped by 3.55% and settled at $0.268. However, buyers returned to the market on Wednesday as HBAR surged almost 10% to move past the 20-day SMA and settle at $0.294. Buyers attempted to push the price above $0.30 as HBAR reached an intraday high of $0.309 on Thursday, but lost momentum after reaching this level. As a result, the price fell below $0.30 and settled at $0.292.
Source: TradingView
Bullish sentiment returned on Friday as HBAR surged over 7% and settled at $0.314. However, it lost momentum on Saturday and registered a drop of almost 3%. HBAR continued to drop on Sunday, falling by 1.18% to end the weekend at $0.301. HBAR recovered on Monday and registered an increase of almost 2% to settle at $0.107. The current session sees HBAR up over 6% and trading around $0.327.
NEAR Protocol (NEAR) Price Analysis
NEAR Protocol (NEAR) faced considerable selling pressure towards the end of December. As a result, it slipped below the 200-day SMA on Monday, registering a drop of almost 2% and settling at $5.03. Sellers continued to dominate on Tuesday as NEAR dropped nearly 3%, slipping below $5 and settling at $4.90. However, it recovered on Wednesday, rising 7.53% to move above the 200-day SMA and settle at $5.27. Buyers retained control on Thursday, pushing NEAR up just over 3% to $5.44. Friday saw NEAR go above the 20-day SMA after an increase of almost 7% and settle at $5.81.
Source: TradingView
Despite the bullish sentiment, NEAR registered a marginal drop on Saturday and settled at $5.78. Buyers returned to the market on Sunday as NEAR registered an increase of 2% and moved to $5.90. NEAR surged to an intraday high of $6.23. However, buyers lost momentum at this level thanks to the 50-day SMA acting as a dynamic resistance level. As a result, NEAR dropped from this level to settle at $6.01, an increase of almost 2%. The current session sees NEAR down just over 1% and trading at $5.95 as sellers attempt to drive the price below $6 while buyers look to push toward the 50-day SMA.
Arbitrum (ARB) Price Analysis
Arbitrum (ARB) has been extremely bullish over the past few sessions, going above key resistance levels and moving averages. ARB’s upward trajectory comes despite starting the previous week in the red, dropping 1.24% to $0.731. Sellers retained control on Tuesday as ARB fell almost 2% and settled at $0.72. However, it recovered from this level on Wednesday, registering an increase of 3.40% and settling at $0.735. Buyers retained control on Thursday as ARB registered a rise of just over 4% and settled at $0.775.
Source: TradingView
Bullish sentiment intensified considerably on Friday as ARB surged past the 20-day SMA, rising 7.55% and settling at $0.834. The price moved past the 50-day SMA on Saturday, rising over 7% and settling at $0.895. ARB continued to push higher on Sunday, ending the weekend positively after an increase of 2.44%. The current week began with ARB experiencing considerable volatility as buyers and sellers struggled to establish control. ARB ultimately registered a marginal increase and settled at $0.919. The current session sees ARB down by 1.31% as sellers look to drive it below the 50-day SMA.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.