Bitcoin has seen a strong surge today, rising 5.2% to $108,400 at the time of writing. The rally follows Elon Musk’s remarks during a live-streamed tech event, where he hinted at Tesla reconsidering Bitcoin payments. Musk mentioned, “Sustainability metrics are improving, and Bitcoin’s energy use is becoming less of a concern.” This statement was widely interpreted as a signal that Tesla might reintroduce Bitcoin as a payment option, driving renewed interest among investors.
This marks a notable recovery from last week, when Bitcoin traded as low as $102,700 following regulatory uncertainty in the European Union. Data from Glassnode shows an 8% increase in Bitcoin active addresses today, a strong indicator of rising market participation.
Bullish Crypto Market Sentiment
The broader cryptocurrency market mirrored Bitcoin’s rally, with the global crypto market cap increasing by 4.1% to $3.78 trillion as of today. Major altcoins like Ethereum (ETH) and Binance Coin (BNB) posted gains of 6% and 4.7%, respectively.
The surge in Bitcoin and the wider market reflects improved macroeconomic sentiment following news of a potential pause in Federal Reserve interest rate hikes. Moreover, futures markets are showing optimism, with Bitcoin Futures Open Interest increasing by 7% to $10.3 billion in the past 24 hours, according to Coinglass.
Institutional Buying and Whale Activity Drive Rally
A major catalyst behind Bitcoin’s recent price action is increased whale activity and institutional buying. Santiment data reveals that Bitcoin whales moved over $1.2 billion worth of BTC into exchanges during the last 48 hours. Notably, Grayscale’s Bitcoin Trust reported inflows of $230 million yesterday, the highest in six months.
Market expert Ali Martinez highlighted in a recent X post, “Large transactions exceeding $100,000 have spiked by 15%, suggesting institutional players are stepping in.” This uptick coincides with rising speculation about spot Bitcoin ETFs, with BlackRock’s pending approval expected in Q1 2025.
ETF Developments Bolster Bitcoin Sentiment
The ongoing speculation around spot Bitcoin ETFs has further fueled market optimism. According to recent reports, BlackRock and Fidelity are among the firms awaiting final approval from the U.S. SEC. Analysts believe the approval of these ETFs could bring billions of dollars into the market, potentially pushing Bitcoin prices to new all-time highs.
Galaxy Digital’s CEO, Mike Novogratz, stated during a CNBC interview, “Bitcoin ETFs will open the floodgates for institutional investors, and I wouldn’t be surprised to see Bitcoin hitting $150K in 2025.”
Bitcoin Price Prediction: Could $120K Be Next?
Bitcoin’s price rally has triggered bullish sentiment among top analysts. Currently trading above its critical resistance level of $105,000, Bitcoin is poised for further gains. Popular analyst PlanB tweeted, “The $120K target is now well within reach as Bitcoin breaks above its long-term moving average.”
Meanwhile, market expert Katie Stockton predicts a short-term pullback to $102,000 before a sustained rally to $120,000 in the coming weeks. As of today, Bitcoin’s 24-hour trading volume surged by 22% to $45 billion, showcasing heightened investor interest.