Bitcoin Extends Rally Amid Bullish Sentiment and Whale Activity
Bitcoin continued its upward trajectory on Wednesday following a sharp rebound in previous sessions, bolstered by a bullish outlook for the cryptocurrency. Investors appeared unfazed by concerns over U.S. interest rates ahead of the release of inflation data.
As of 01:50 ET (06:50 GMT), Bitcoin rose 2.1% to $97,003.4. The token had surged above the $97,000 mark on Tuesday but later pared some of those gains.
Bullish Momentum and Whale Activity Propel Bitcoin
Cryptocurrency analysts remain optimistic about Bitcoin’s price trajectory, predicting substantial growth in the coming years.
Forecasts suggest Bitcoin could climb to a range of $175,000 to $461,000 by 2025. Tom Lee, head of research at Fundstrat and a prominent Bitcoin advocate, has set an end-of-2025 price target between $200,000 and $250,000, citing long-term bullish trends despite near-term volatility.
Analysts also point to potential supportive policies under the incoming Donald Trump administration, including the creation of a strategic Bitcoin reserve and broader mainstream adoption, which could push Bitcoin’s value as high as $400,000.
On-chain analytics firm Santiment highlighted increasing confidence among large Bitcoin holders. Whales holding between 10 and 10,000 BTC have accumulated 2,997 BTC since January 1, 2025, signaling optimism for Bitcoin’s long-term prospects.
Traders Brush Off Federal Reserve Concerns
Traders largely ignored concerns about the Federal Reserve’s hawkish stance ahead of key Consumer Price Index (CPI) data expected later on Wednesday. The Fed had previously indicated fewer interest rate cuts for 2025 in its December meeting, which appeared to ease market jitters.
Broader Crypto Market Rallies
Altcoins outperformed Bitcoin in the broader cryptocurrency market, reflecting heightened risk-on sentiment.
- Ether (ETH): Up 1.4% to $3,225.25
- XRP: Soared 12.2% to $2.8387
- Solana (SOL): Gained 1.6%
- Polygon (MATIC): Increased by 2.2%
- Cardano (ADA): Jumped 6.7%
- Dogecoin (DOGE): Rose 4.4%
The strong performance across cryptocurrencies highlights growing investor confidence in the digital asset space.
