Will Major Investors Accelerate Purchasing and Push Bitcoin to Close the Year Above $100,000?

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Will Major Investors Accelerate Purchasing and Push Bitcoin to Close the Year Above $100,000?

Bitcoin gained approximately 4% yesterday as major investors increased their purchases following a decline over the past week. With purchases from the lowest levels in December, Bitcoin has set its sights on the $100,000 mark again. As major markets closed for the Christmas holiday, Bitcoin reached $99,000, rebounding after last week's drop and providing hope to market investors.

According to Santiment data, particularly among addresses holding 10 to 1,000 Bitcoins, increased purchases were one of the main factors driving Bitcoin's price upward. Significant purchases made by whales have raised Bitcoin's market value, bringing it closer to $100,000 again. Santiment noted that this group of investors is one of the most significant driving forces in the Bitcoin market and pointed out that prices could rise further. Analysts predict that if this trend continues, Bitcoin could show a strong performance by the end of the year and into the new year.

Bitcoin ETFs experienced significant outflows, while Ether is on the rise. BlackRock's (BLK) iShares Bitcoin Trust (IBIT) ETF saw substantial activity with an outflow of $188.7 million yesterday. Other U.S.-based Bitcoin funds also drew attention with a total outflow of $338.4 million on the same day. While Fidelity (FIS) and ARK 21Shares Bitcoin ETFs experienced significant outflows, the Bitwise Bitcoin ETF received positive inflows of $8.5 million.

In contrast, Ethereum ETFs saw noteworthy inflows in December. U.S. spot Ether ETFs attracted a high number of investors, drawing attention in December. Experts expect Ether to perform better than Bitcoin by 2025. These developments indicate that investors are starting to prefer Ether in their quest for portfolio diversification.

Growth expectations in the cryptocurrency market: As December comes to a close, Bitcoin is trading around the $98,000 mark while Ether is hovering around $3,400. Some analysts suggest that Ether could outperform Bitcoin in early 2025. Meanwhile, by December 16, Bitcoin ETFs surpassed gold ETFs with $129 billion in managed assets. Recently, BlackRock advised investors to allocate a portion of their portfolios to Bitcoin, reiterating the potential of the cryptocurrency. However, the company also highlighted the risks associated with Bitcoin investments.