Bitcoin has recently surpassed its previous all-time high, reaching an impressive $108,300, driven by strong investor demand and positive sentiment in global markets.

MicroStrategy has significantly increased its Bitcoin holdings, acquiring $1.5 billion worth of Bitcoin, which brings its total to 15,350 BTC, now valued at over $45 billion.

At the start of 2024, Bitcoin was valued around $40,000, but it skyrocketed to over $108,000 by November, showcasing a remarkable growth trajectory.

Experts predict that if the current trends persist, Bitcoin could potentially reach new heights, with estimates suggesting it may hit $120,000 in the future.

The Coinbase Premium Index, which measures demand in North America, has shown signs of weakness, suggesting that the recent price surge may not be driven by U.S. investors.

The surge in Bitcoin's price follows U.S. President-elect Donald Trump's proposal to create a national Bitcoin reserve, further fueling investor interest.

Despite the bullish price movement, some analysts, including Yonsei Dent, caution that a lack of support from U.S. demand could indicate potential weakness in Bitcoin's medium-term momentum.

Conversely, increased selling pressure could lead to a retracement towards the $100,000 level, which may serve as a critical support point for Bitcoin.

Analyst Kripto Baykus reported that Bitcoin reserves on exchanges have plummeted from approximately 3 million BTC in January 2024 to a historic low of 2.4 million BTC by December, indicating a significant supply shock.

This decline in exchange reserves reflects a growing trend among institutional investors adopting a 'hodl' strategy, which suggests increasing confidence in Bitcoin's long-term value.

Analysts believe that as long as Bitcoin maintains its position above $104,000, it could challenge the $110,000 mark and explore new price territories.

This Bitcoin rally is part of a broader trend, with significant upward movements also observed in traditional markets such as U.S. stocks and gold.