Bitcoin Surges Back to $97K: Why Experts Predict This Rally Could Run Longer
Bitcoin Surges Back to $97K: Why Experts Predict This Rally Could Run Longer
Bitcoin is making headlines again with a strong breakout. After a quiet period, the top cryptocurrency has jumped more than 4% in the last 24 hours, pushing past <$97K>. This is the highest level since mid-November. What’s driving this move, and could it last? Let’s break it down.
The Spark: Stable Inflation Data Fuels Optimism
The rally kicked off on Tuesday following a key report from the Bureau of Labor Statistics. Inflation stayed steady at the end of last year. This news calmed fears and boosted hopes for lower interest rates in 2025.
Lower rates are great for risk assets like Bitcoin. When borrowing costs drop, investors pour money into high-growth options. Bitcoin, often called “digital gold,” thrives in such environments. Markets now expect the Federal Reserve to cut rates soon if inflation keeps cooling.
This shift could “price back in” bullish bets that faded last year. Bitcoin’s price had been stuck, leaving many holders nervous. Now, fresh momentum is drawing eyes back to BTC.
Crypto Stocks Join the Party
The excitement isn’t just in Bitcoin. Related stocks are surging too:
- Coinbase (COIN) up nearly 3%.
- MicroStrategy (MSTR) climbing over 6%.
These moves show broader market confidence. Companies tied to crypto often lead the way when Bitcoin rallies.
Expert Takes: Momentum Has Legs
Top analysts are bullish. Sean Farrell, head of digital asset strategy at Fundstrat, said this surge “continues in the coming days.” He sees further upside ahead.
Joel Kruger from LMAX Group agrees. He points to Bitcoin breaking the <$95K> level—a key zone with both technical and psychological weight. Once breached, it often signals more gains. “Regulatory developments are helping support sentiment,” Kruger noted.
“This rally likely has further upside from here.” – Fundstrat
These views suggest the current push isn’t a flash in the pan. Instead, it could build into a sustained trend.
Regulatory Tailwinds: Clarity Act in Play
Another big factor is U.S. crypto legislation. The Clarity Act aims to create clear rules for digital assets. It would define how exchanges, tokens, and markets operate—reducing uncertainty that has plagued the industry.
Progress is happening. Bipartisan talks are advancing, though the Senate delayed a vote to late January. This postponement shows it’s not a sure thing yet, but momentum is building. Clear regs could unlock billions in institutional money.
Investors love this. Stable rules mean less risk, more adoption. Bitcoin often rallies on such news.
Smaller Players Ride the Wave
Even niche stocks are popping. High Roller Technologies (ROLR), an online casino firm, saw shares skyrocket. Why? A new partnership with Crypto.com to launch prediction markets in the U.S.
Prediction markets let users bet on real-world events using crypto. This tie-up taps into growing demand, blending gaming, crypto, and betting. It’s a sign of how Bitcoin’s rise lifts the whole ecosystem.
Technical Breakdown: Why $95K-$97K Matters
From a chart view, Bitcoin’s breakout is textbook. The <$95K> resistance was tough—holding for months. Breaking it opens doors to higher targets like $100K or beyond.
Key levels to watch:
- $97K: New support if it holds.
- $100K: Psychological round number.
- $105K: Next major resistance from past highs.
Volume is rising, confirming buyer strength. RSI isn’t overbought yet, leaving room to run.
Why Last Year’s Slump Is in the Rearview
2024 was tough for Bitcoin. Prices stalled amid high rates and election uncertainty. But now:
- Inflation is taming.
- Rate cuts loom.
- Pro-crypto policies gain steam.
This combo renews interest. Retail traders are back, and institutions are eyeing dips.
What Could Derail the Rally?
No bull run is risk-free. Watch for:
- Hot inflation data reversing rate cut bets.
- Clarity Act stalls in Congress.
- Global events like trade tensions.
Still, the setup looks solid. Experts see this as the start of something bigger.
Final Thoughts: Time to Pay Attention to Bitcoin Again
What do you think? Will Bitcoin hit $100K soon? Share in the comments below!
Stay tuned for more crypto updates.
