Bitcoin’s upward trajectory continues to capture the attention of investors and analysts alike. Despite already achieving record highs, the digital asset could be poised for even greater gains in the coming months. According to a recent report by cryptocurrency custodian Copper.co, Bitcoin’s price might reach $100,000 by the time the next US President is inaugurated on January 20, 2025.

Bitcoin’s Surge Amid Political Changes

The idea of Bitcoin reaching $100,000 is not entirely speculative. The cryptocurrency experienced a sharp surge in price following the victory of the Republican presidential candidate, Donald Trump, breaking through its previous all-time high (ATH) of $73,737 set in March 2024. This surge is partly fueled by the growing institutional interest in Bitcoin, especially through exchange-traded funds (ETFs).

Fadi Aboualfa, Head of Research at Copper.co, explained that the firm’s forecast is based on historical trends in Bitcoin ETF accumulation. He noted that with ETFs holding about 1.1 million Bitcoin, a price of $100,000 is entirely feasible by Inauguration Day.

“We have back-tested the ETF accumulation trend against potential price ranges,” Aboualfa stated. “A $100,000 Bitcoin is quite possible by the time the 47th US President heads to the Capitol for inauguration on January 20.”

The Role of Bitcoin ETFs in Price Movements

ETFs have become an increasingly important factor in Bitcoin’s price movements. The total value of net assets held in Bitcoin ETFs has already reached $69.28 billion, accounting for more than 5% of Bitcoin’s total market cap. This surge in institutional adoption is one of the key drivers behind Bitcoin’s current price rally.

Notably, Copper.co had earlier predicted that Bitcoin ETFs could hold nearly a million BTC by Election Day 2024. As of now, these ETFs hold approximately 986,000 BTC, confirming the firm’s initial prediction.

In October 2024, Bitcoin ETFs saw a significant uptick in activity, attracting nearly $3 billion in net inflows. This marks a six-month high in spot Bitcoin ETF demand, further indicating the growing interest from institutional investors.

Could $100K Bitcoin Become a Reality?

The notion of Bitcoin hitting $100,000 by January 2025 is built on more than just optimistic speculation. The increasing popularity of Bitcoin ETFs is one of the most prominent signs that institutional investors are betting on the cryptocurrency’s continued growth. As these financial products attract more capital, the value of Bitcoin is likely to continue climbing.

The latest data also indicates that the demand for Bitcoin ETFs is not slowing down. Bitcoin’s recent gains — trading at $74,300 at the time of writing — represent a 6.4% increase in the past 24 hours alone. While Bitcoin’s price is already hovering near record levels, many analysts believe that the $100,000 mark could be well within reach.

Ethereum’s Struggles Amidst Bitcoin’s Rise

While Bitcoin is basking in the spotlight, Ethereum (ETH) has been struggling to maintain momentum. Despite Ethereum being the second-largest cryptocurrency by market cap, it has failed to achieve the same level of price growth as Bitcoin in recent months. According to Copper. co’s report, betting markets show only a 12% chance of Ethereum hitting a new all-time high this year.

The report attributes Ethereum’s underperformance to a combination of factors. For one, Ethereum’s supply growth remains relatively low, with just 89,000 Ether added year-to-date. Meanwhile, over 5.7 million Ether have moved into staking, reducing the available supply for trading. Additionally, the lukewarm appeal of Ethereum ETFs has dampened investor sentiment, contributing to Ethereum’s struggles in the market.

However, it’s not all doom and gloom for Ethereum. Recently, the Michigan Retirement System revealed that it had invested $10 million into Ethereum ETFs, surpassing its total investment in Bitcoin ETFs. This shift in institutional interest may provide a much-needed boost for Ethereum in the future.

Volatility and Caution for Investors

While the potential for Bitcoin to hit $100,000 is enticing, it’s important to remember that the cryptocurrency market remains highly volatile. As evidenced by Bitcoin’s price fluctuations in recent months, investors must remain cautious when entering the market.

Just days ago, on November 4, Bitcoin ETFs recorded $541 million in single-day net outflows, marking the second-largest outflow since January. This highlights the volatility inherent in the cryptocurrency market, where large swings in investor sentiment can have a significant impact on asset prices.

Despite these occasional setbacks, Bitcoin’s long-term outlook remains strong, driven by increasing institutional adoption and the growing popularity of Bitcoin ETFs. For many investors, the prospect of Bitcoin reaching $100,000 by January 2025 is a realistic and highly anticipated scenario.

Conclusion: A Bright Future for Bitcoin?

Bitcoin’s journey toward $100,000 is not just a pipe dream; it is supported by solid trends in institutional adoption, ETF activity, and historical data. While the road ahead remains uncertain and volatile, the current momentum points toward continued price appreciation for Bitcoin in the months leading up to the inauguration of the next US President.

As more institutional capital flows into Bitcoin ETFs and other crypto-related financial products, the likelihood of reaching $100,000 increases. However, as with any investment in the cryptocurrency market, caution is key, as sudden price swings and unpredictable market shifts can occur at any time.

For now, Bitcoin enthusiasts and investors will be closely monitoring the markets, eagerly anticipating whether the $100,000 milestone will be achieved by January 2025.