Bitcoin Regains Ground, Targets $120.000 With ETF Support

• Bitcoin Recovers $97.000 After Tax Liquidations
• BlackRock ETF hits $50 billion in record time.
• Bitcoin market dominance rises to 56,2% by 2025.

Bitcoin (BTC) has started 2025 showing signs of recovery after a period of sell-off driven by tax-loss harvesting strategies at the end of the year. Since which fell below six digits on December 19, the asset has not yet returned to the level of US$ 100.000, but analysts point to an optimistic movement in the short term.

At the time of publication, the price of Bitcoin was quoted at US$97.347,84, up 3.8% in the last 24 hours.

Isaac Joshua, CEO of the Gems platform, highlighted that the decline in Bitcoin’s price towards the end of the year was driven by strategic liquidations by investors. “Many sold Bitcoin ETFs and the underlying asset to optimize their tax reporting, a common practice in financial markets during this period,” Joshua said.

Another factor that should accelerate Bitcoin adoption is the exponential growth of BlackRock's Bitcoin ETF, the iShares Bitcoin Trust (IBIT), which surpassed $50 billion in assets under management in just 228 days. According to Ryan Lee, chief analyst at Bitget, this milestone cements BTC as a solid alternative for institutional investors. “The legitimacy provided by ETFs like IBIT makes it easier for Bitcoin to enter the mainstream,” Lee commented.

Joshua also predicts that the upcoming presidential inauguration in the United States could be a boon for risk assets like Bitcoin. He believes that pro-business policies, coupled with the return of liquidity to the market after the start of the new fiscal year, should drive the asset's price to levels above US$ 120.000 in the next weeks.

Technical Outlook and Market Sentiment

Bitcoin's dominance in the cryptocurrency market has also grown, reaching 56,2%, while the Fear and Greed Index stabilized at 51, signaling greater investor confidence. Technically, the triple support near US$ 91.985 sustains the bullish momentum, with immediate resistance at US$ 108.828.

Analysts remain bullish on Bitcoin's 2025 outlook, predicting the asset could reach as high as US$ 200.000, depending on regulatory and economic conditions.