As the first trading week of 2025 wraps up, Bitcoin continues to showcase a striking shift in sentiment. Despite the optimism, market watchers remain cautiously optimistic about the road ahead.
Bitcoin’s Rollercoaster Week
Bitcoin began the year with a bang, rebounding strongly from New Year’s Eve lows and reclaiming the $97,000 mark. The cryptocurrency’s comeback extended to surpass its 50-day simple moving average (SMA), a key indicator many traders associate with the continuation of a bull market.
Crypto analyst Skew highlighted the significance of this move, stating that Bitcoin is “sustaining momentum” and closing strong. However, not all are convinced of a sustained rally. Some traders, like Scient, caution that unless Bitcoin breaches and stabilizes above $99,000, a retreat to the $88,000–$90,000 zone remains possible.
Others, like Crypto Tony, anticipate short-term fluctuations, describing the recent uptick as a potential “relief bounce” before another dip. Analysts agree that the first full week of trading in 2025 will provide more clarity on Bitcoin’s trajectory.
Bitcoin ETFs Show Signs of Revival
One of the standout developments of the week was a major recovery in Bitcoin ETF inflows. On January 3, U.S. spot Bitcoin ETFs saw net inflows of $908 million, a sharp turnaround after a period of record outflows. Fidelity’s Wise Origin Bitcoin Fund led the charge, taking in $357 million, while BlackRock’s iShares Bitcoin Trust added $253 million.
Analysts attribute the renewed interest to institutional investors who are regaining confidence following the year-end sell-off. Crypto trader Patric H noted that “big money is back to buying,” marking a significant shift in sentiment.
Coinbase Premium and U.S. Influence
Another positive signal comes from the Coinbase Premium Index, which tracks the pricing difference between Bitcoin on U.S.-based Coinbase and Binance. After hitting 12-month lows on December 31, the index has rebounded above its 14-day moving average. This suggests that U.S.-based buyers are beginning to exert a stronger influence on Bitcoin’s price.
What’s Next for Bitcoin?
While the short-term outlook for Bitcoin remains uncertain, many analysts are bullish for the first quarter of 2025. As institutional interest returns and macroeconomic conditions stabilize, Bitcoin’s journey past the $100,000 milestone could reignite the next leg of its bull run.
For now, traders are keeping a close eye on critical levels like $99,000 and the $88,000–$90,000 support zone to navigate the market’s nearterm volatility.
