In the last 24 hours, Bitcoin’s (BTC) price has seen a significant increase of 2.65%, reaching around $102,645 on December 14. This growth can be attributed to several factors, including the inclusion of MicroStrategy into the Nasdaq 100 Index and continued positive inflow streaks across US-based spot Bitcoin exchange-traded funds (ETFs).
MicroStrategy’s Rise in Prominence
The addition of MicroStrategy to the Nasdaq 100 Index is a significant development for Bitcoin. This move follows the company’s impressive growth in 2024, with its share value soaring by 500% year-to-date. The surge can be attributed to the unconventional approach and outspoken advocacy for Bitcoin by Michael Saylor, MicroStrategy’s founder.
MicroStrategy has gained prominence and increased its valuation since it began accumulating Bitcoin in 2020. As of December 2024, it had more than $40 billion worth of the apex cryptocurrency. Notably, at the time of the first Bitcoin acquisition, MicroStrategy’s market cap was $1.31 billion, a figure that has since increased to nearly $100 billion in December.
This growth has placed MicroStrategy ahead of about half the Nasdaq 100’s members, as shown in the chart below.
Theoretical Impact on Bitcoin
Market analyst Alex Krüger suggests that a bullish Nasdaq 100 index could have a similar upside impact on Bitcoin. He explains:
"MicroStrategy included in the Nasdaq. So people have to buy MSTR because its in the index which means Saylor can sell more shares and converts to buy more bitcoin which pushes bitcoin up and then MSTR goes up which means you have to buy more shares to match the index, rinse and repeat,’ he adds, ‘Bitcoin to infinity.’"
Record Bitcoin ETF Flows Drive BTC Prices Higher
BTC’s gains today follow about two weeks of continuous inflows into US-based spot Bitcoin ETFs. Between November 27 and December 13, the cumulative flow into these funds jumped from $30.43 billion to a record high of $35.60 billion.
Between December 2 and December 8, MicroStrategy acquired 21,550 BTC at an average price of $98,783 per Bitcoin. Similarly, on December 10, Bitcoin miner MARA Holdings disclosed purchasing 11,744 BTC. These significant acquisitions reflect growing institutional interest in Bitcoin as a strategic asset.
Growing Institutional Interest
Adding to the bullish sentiment, investors are closely monitoring a proposal by Senator Cynthia Lummis to establish a US strategic Bitcoin reserve, targeting the accumulation of up to 1 million BTC over time. States like Texas are also exploring similar initiatives.
Meanwhile, a Texas lawmaker recently introduced legislation to hold Bitcoin as a reserve asset for at least five years, emphasizing that "no taxpayer funds would be spent on buying Bitcoin." These developments highlight a growing trend of Bitcoin adoption at both institutional and governmental levels, further driving market optimism.
Bitcoin May Slip Below $100,000 Again
Bitcoin’s price rise today is also part of a consolidation trend occurring inside its prevailing rising wedge pattern. A rising wedge forms when the price trades higher inside a range defined by two ascending, converging trendlines. It resolves when the price breaks below the lower trendline and falls by as much as the wedge’s maximum height.
As of December 14, BTC’s price was testing the wedge’s upper trendline at around $101,900 as resistance, eyeing a pullback toward the lower trendline at around $97,500. This level aligns with the 20-day exponential moving average (20-day EMA; the purple wave).
The wedge’s downside target for December appears to be closer to BTC’s 50-day EMA (the red wave) at around $89,500.
Conclusion
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. The inclusion of MicroStrategy in the Nasdaq 100 Index and continued positive inflow streaks across US-based spot Bitcoin ETFs have contributed to Bitcoin’s price increase.
However, it is essential to note that a decisive break above the wedge’s upper trendline will likely invalidate the bearish reversal outlook. Conversely, a pullback toward the lower trendline at around $97,500 or even further down to $89,500 cannot be ruled out.
Disclaimer
This article is for informational purposes only and should not be considered as investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
