• U.S. Spot Bitcoin ETFs saw nearly $1 billion in inflows over Friday and Monday.
• Speculation about the U.S. Bitcoin Strategic Reserve is contributing to bullish sentiment.

Bitcoin (BTC) has surged past the $100,000 mark again, driven by significant institutional purchases from U.S. Spot Bitcoin ETFs. The influx of nearly $1 billion over Friday and Monday has helped Bitcoin maintain its upward momentum. 

This robust buying trend suggests strong institutional confidence in the flagship cryptocurrency, even as technical indicators show that Bitcoin may be overbought. The U.S. Spot Bitcoin ETFs have played a crucial role in this surge. 

On Monday, the combined inflows from these ETFs reached $978 million, marking the second consecutive day of substantial purchases. Notably, Fidelity’s FBTC led the charge, contributing $370.2 million to the total inflow. BlackRock’s IBIT also contributed with $209.1 million. This continuous flow of capital further demonstrates the growing institutional interest in Bitcoin.

Institutional Support Strengthens Bitcoin’s Future

Moreover, corporate entities like MicroStrategy have been increasing their Bitcoin holdings. On Monday, MicroStrategy announced a purchase of 1,070 BTC, valued at approximately $101 million. Despite a slowdown in their acquisitions over recent weeks, the company plans to buy more, with $42 billion allocated for BTC purchases over the next three years. This long-term demand from firms like MicroStrategy further supports Bitcoin’s rally.

Despite the positive outlook, Bitcoin’s price may be nearing a short-term correction. The $BTC market is currently overbought, and a pullback could be imminent. The Fibonacci retracement levels indicate potential support at $100,000 and $96,300. A deeper correction might be healthy for the price, providing a foundation for future growth.

Bitcoin’s price remains volatile, yet the overall sentiment in the market is optimistic. The total market cap of Bitcoin has risen to $2 trillion, with a 24-hour trading volume of $48.18 billion. The market is also reacting positively to the prospect of U.S. President Donald Trump potentially taking office again. Speculation about the U.S. establishing a Bitcoin Strategic Reserve is fueling this optimism.

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