• Bitcoin’s price surge above $100K sparks optimism, but long-term trends remain uncertain.  
• Key political and economic factors, including Trump’s inauguration, affect crypto sentiment.  
• Bitcoin accumulation resumes, indicating a potential market rebound despite stablecoin concerns. 

Bitcoin has crossed $100,000 for the first time in 2025, triggering renewed optimism in the crypto market. BTC surge had earlier taken it to $103,000 in early December 2024, making analysts mull over its trajectory. Investors are now looking at if rally signals sustained momentum or just a brief uptick to invoke retail interest.

📊 Crypto markets have ignited new optimism as Bitcoin briefly crossed above $100K for the first time in 2025. Was the bounce just to get retailers excited again, or is this just the beginning of another great year? We investigate in our latest insight. 👇https://t.co/qNvqKJR3Sl

— Santiment (@santimentfeed) January 16, 2025

Political and Economic Factors Driving Bitcoin’s Price

Bitcoin’s price movement aligns with several critical developments. Donald Trump’s inauguration on January 20th, coupled with potential shifts in SEC policies under his administration, could reshape the crypto landscape.

Additionally, a Federal Reserve decision on interest rates after the release of a positive CPI report on January 15th highlights the impact of economic policy on crypto markets. Lower inflation numbers may bolster confidence, but future rate hikes could temper investor enthusiasm.

Related: Why Bitcoin’s $100K Roadblock Could Trigger a Price Surge

On-Chain Metrics Signal Accumulation

On-chain metrics show increased activity from wallets holding at least 10 BTC, which has resumed its upward trend. This accumulation indicates renewed confidence among large holders, a signal often preceding bullish price action.

However, declining Tether and USD Coin holdings by key market players raises caution. Stablecoin activity remains a critical factor for maintaining long-term confidence in Bitcoin’s price stability.

From October 2024 to January 2025, social dominance metrics reveal growing attention on Bitcoin, Polygon, and Dogecoin. Bitcoin’s increased social visibility often aligns with price movements, underscoring its role as a leading digital asset.

Related: Bold Bitcoin Predictions Range from $120K to $13M—Who’s Right?

In early December, Bitcoin reached a high of $103,000, supported by heightened discussions across social platforms. This suggests a close link between market sentiment and Bitcoin’s ongoing rally.