What is happening now
This week, Bitcoin's price has steadily climbed above the $95,000 mark, breaking through recent resistance levels. The increase is supported by rising trading volumes and a surge in new wallet creations, indicating growing interest from both retail and institutional investors. Onchain data shows higher spot buying activity, with some analysts suggesting Bitcoin could be on track for a run toward $100,000.
Why it matters
Bitcoin's price momentum is important because it reflects increasing confidence in the leading cryptocurrency amid broader market uncertainties. As more buyers enter the market, Bitcoin’s role as a potential store of value and a digital asset is reinforced. This renewed activity also signals stronger market participation, which could attract further adoption and investment in cryptocurrencies more widely.
Key risks
Despite positive signs, risks remain that could affect Bitcoin’s price trajectory. These include potential regulatory changes expected in late January as U.S. lawmakers discuss crypto market legislation, which may affect trading and custody rules. Additionally, market volatility can rise quickly due to global economic factors or unexpected news, affecting investor sentiment. New scams and impersonation threats have also increased, encouraging extra caution among traders and wallet users.
What to watch next
Investors should monitor upcoming legislative developments, particularly the January 27 CLARITY Act markup in the U.S. Senate Agriculture Committee, which may bring changes to crypto rules. Market participants should also watch Bitcoin's ability to hold above $95,000 and whether trading volumes continue to increase. Onchain metrics such as new wallet addresses and spot buying trends will provide insight into demand strength. Staying alert to scam alerts and wallet security updates remains essential.
Quick FAQ
Q1: Is Bitcoin’s price increase expected to last?
While current momentum is positive, market volatility and regulatory developments could impact price sustainability.
Q2: How can new crypto users protect their wallets?
Use strong passwords, enable two-factor authentication, and avoid sharing private keys. Be cautious of phishing and impersonation scams.
Q3: What role do new wallets play in Bitcoin's growth?
Rising new wallet creations typically indicate growing user interest and adoption, which can support price increases.