Bitcoin (BTC) has experienced a significant price increase of 2.65% in the last 24 hours, reaching around $102,645 on December 14. This upward trend can be attributed to several factors, including MicroStrategy’s inclusion into the Nasdaq 100 Index and positive inflow streaks across US-based spot Bitcoin exchange-traded funds (ETFs).
MicroStrategy’s Inclusion in Nasdaq 100 Index Boosts Bitcoin
One of the primary drivers behind Bitcoin’s price surge is the decision by Nasdaq Global Indexes to add MicroStrategy to their Nasdaq 100 Index. This move follows MicroStrategy’s remarkable growth in 2024, with its share value soaring 500% year-to-date. The company’s founder, Michael Saylor, has been a vocal advocate for Bitcoin and has led the charge in accumulating over $40 billion worth of the apex cryptocurrency as of December 2024.
MicroStrategy’s Rise to Prominence
Since beginning its Bitcoin accumulation journey in 2020, MicroStrategy has experienced an impressive growth trajectory. At the time of its first Bitcoin acquisition, the company’s market capitalization was a mere $1.31 billion. However, as of December 2024, it had surged to nearly $100 billion, placing it ahead of about half the Nasdaq 100’s members.
The chart below illustrates MicroStrategy’s performance against various top indexes and stocks.
Nasdaq Inclusion and Its Potential Impact on Bitcoin
According to market analyst Alex Krüger, the inclusion of MicroStrategy in the Nasdaq 100 Index could have a significant upside impact on Bitcoin. "MicroStrategy included in the Nasdaq. So people have to buy MSTR because it’s in the index which means Saylor can sell more shares and convert 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 explains.
Record Bitcoin ETF Flows Drive Prices Higher
Bitcoin’s price surge today follows approximately 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.
Growing Institutional Interest in Bitcoin
Significant acquisitions by companies such as MicroStrategy and MARA Holdings have contributed to growing institutional interest in Bitcoin. These developments reflect a trend of increasing adoption at both institutional and governmental levels, further driving market optimism.
Proposal for US Strategic Bitcoin Reserve
Senator Cynthia Lummis has introduced a proposal to establish a US strategic Bitcoin reserve, targeting the accumulation of up to 1 million BTC over time. This initiative is part of a growing movement towards Bitcoin adoption by governments and institutions worldwide.
Texas Legislature Introduces Legislation to Hold Bitcoin as Reserve Asset
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." This move highlights the increasing recognition of Bitcoin’s potential as a strategic asset by governments and institutions.
Bitcoin Price May Slip Below $100,000 Again
Bitcoin’s price rise today is 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.
BTC/USD Daily Price Chart
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 downside target for December appears to be closer to BTC’s 50-day EMA (the red wave) at around $89,500.
Conversely, a decisive break above the wedge’s upper trendline will likely invalidate the bearish reversal outlook. Such a scenario would mirror Bitcoin’s behavior during the rising wedge pattern observed between August and November.
Note: 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.
Conclusion
Bitcoin’s price surge to $102,645 can be attributed to various factors, including MicroStrategy’s inclusion in the Nasdaq 100 Index and positive inflow streaks across US-based spot Bitcoin ETFs. Growing institutional interest in Bitcoin, combined with proposals for strategic reserves and legislation to hold Bitcoin as a reserve asset, further drive market optimism.
As Bitcoin continues its consolidation trend within the prevailing rising wedge pattern, it remains essential for investors and traders to conduct thorough research and analysis before making any investment or trading decisions.
