Bitcoin Hits $102,000 Milestone, Institutional Capital Inflow and Exchange Supply Driving Gains

Bitcoin reached a significant milestone on Monday, surging to nearly $102,000 for the first time since December 19, marking a strong start to the year 2025 after a holiday slowdown. The recent price surge can be attributed to two key factors – the return of institutional capital inflow and a decrease in the exchange supply of BTC.

One of the major drivers behind the recent gains in Bitcoin is the resurgence of institutional capital inflow. On Friday, Bitcoin saw a substantial increase in net inflows across its US-based Spot ETFs, totaling $908.1 million. This marked the largest inflow volume recorded since mid-December 2024, indicating a renewed demand for the digital asset.

In addition to institutional investment, corporate Bitcoin purchases have also been making headlines. MicroStrategy, a prominent player in the crypto space, recently acquired another 1,020 BTC, further solidifying its position as a major Bitcoin holder. Furthermore, Texas-based KULR Technology Group made a significant move by adding $21 million worth of BTC to its treasury, effectively doubling its existing holdings.

These developments highlight the growing interest and confidence in Bitcoin from both institutional and corporate entities. The influx of capital from these sources has played a crucial role in driving up the price of Bitcoin and setting a positive tone for the cryptocurrency market in the new year.

As Bitcoin continues to gain traction and attract more mainstream adoption, investors and market participants are closely monitoring the evolving dynamics of the market. With institutional capital inflow on the rise and the exchange supply of BTC dwindling, the future looks promising for Bitcoin and the broader cryptocurrency ecosystem.