Bitcoin's price has surged dramatically, reaching a two-month high of $96,250 on Tuesday and trading around $95,190, bringing the cryptocurrency tantalizingly close to the $100,000 psychological barrier. Analysts attribute this powerful rally primarily to spot buying, where investors purchase the actual asset, signaling robust underlying demand rather than speculative futures trading.
Market observer Will Clemente noted the rally is "led by spot buying," with spot volume hitting multi-day highs even as perpetual contract funding rates turn negative and open interest rises. This dynamic suggests the move is being driven by genuine capital inflows. The momentum was further evidenced by a $754 million inflow into U.S.-listed Bitcoin ETFs on Tuesday, the largest single-day influx since October 7.
Analysts are increasingly bullish on Bitcoin's near-term prospects. Charles Edwards, founder of Capriole Fund, highlighted a critical technical development: Bitcoin closed a daily candle above $93,500. He stated this "opens up good odds of a trend to $108K from here," contingent on a weekly close above the same level to confirm a "downside fakeout" and solidify the bullish reversal. Similarly, trader Michaël van de Poppe predicts Bitcoin will "run to $100K in the coming week" and that dips should be viewed as buying opportunities, declaring "the bull market hasn't died; it's about to start."
Prediction markets reflect this growing optimism. Polymarket data indicates a 51% chance Bitcoin hits $100,000 by February 1, with a 23% probability it surpasses $105,000. While Bitcoin faces technical resistance in the $94,000-$95,000 zone, a sustained break above could target the 200-day moving average at $106,058.
The rally may also reignite retail investor interest. After two months of largely negative sentiment following an October downturn, analysts at Santiment suggest that as Bitcoin approaches $100,000, it could trigger "retail FOMO" (Fear Of Missing Out), potentially fueling further price gains and helping the asset set new records.
