🌎 Bitcoin Reclaims $100,000 Amid Rising Institutional Interest

Bitcoin Reclaims $100,000 Milestone Amid Rising Institutional Interest

Bitcoin observed a nearly 5% weekly gain, reclaiming the $100,000 milestone, and renewing hopes for further gains among BTC holders following the holiday season sell-off. As institutional interest and retail participation climb, Bitcoin and altcoins could cover lost ground in this market cycle.

Altcoin Season Index and Analysis of Bitcoin Dominance

The altcoin season index reads 53 on a scale of 0 to 100, implying that it is not the altcoin season yet, characterized by top 50 altcoins outperforming Bitcoin for 90 days. Bitcoin’s dominance is consolidating under 58%, as of Tuesday.

Crypto market capitalization, excluding Bitcoin, dipped to $1.41 trillion early on Tuesday, down from its peak of $1.64 trillion observed in December 2024. A steady increase in crypto market capitalization, excluding Bitcoin, rallying towards the 2021 cycle top to the $1.71 trillion level could signal a recovery in the market and a likely return of the altcoin season.

On-chain Analysis of Top Altcoins on Exchanges and Token Holders

Supply of Bitcoin and top altcoins like Ethereum on exchanges can help ascertain the selling pressure on the tokens. The total number of holders is another key on-chain metric that can be used to determine the demand and relevance of an altcoin among traders.

The Santiment chart maps the total number of XRP and Dogecoin holders over the past three months, pointing to a decline in Bitcoin and Ethereum’s exchange supply since the last week of November 2024. In the same timeframe, there is a consistent increase in the holders of XRP and DOGE.

Whale Stablecoin Supply and What to Expect This Cycle

Stablecoins are the entry and exit points for traders across centralized crypto exchanges. Santiment data shows stablecoin supply held by whales holding upwards of $5 million has risen over 5% in the past 30 days. Higher stablecoin holdings are correlated with higher buying pressure and demand for Bitcoin and altcoins.

Institutional Interest Returns to Crypto

One of the major drivers of Bitcoin’s bull run in 2024 was institutional capital inflow to U.S. based Spot Bitcoin ETFs. After a long streak of outflows, Bitcoin ETFs have observed a return of capital inflow from institutional investors.

Farside Investors’ data shows that on January 3 and January 6, net flow to Bitcoin ETFs exceeded $900 million. The return of institutional interest and U.S. macroeconomic drivers could help sustain Bitcoin price above the $100,000 milestone.

Top 3 Trades for the 2025 Altcoin Season

Here are three top altcoins to watch in the 2025 altcoin season:

Solana (SOL) holds steady above the milestone of $200 and traded at $206 on Tuesday. Technical indicators support a bullish thesis for SOL, with a potential 12% gain to test resistance at $231.62.
Cardano (ADA) is currently consolidating above the $1 level and could gain nearly 20% to test resistance at $1.2369, with a bullish target of $1.3264.
Ethereum (ETH) is currently consolidating close to the $3,400 level, gearing to test resistance at $3,720, nearly 9% above the current price, with MACD supporting gains in Ethereum price.

XRP and DOGE are among the other top altcoins to watch in the 2025 altcoin season.