Investing.com-- Bitcoin extended gains on Wednesday after a sharp rebound in the previous sessions amid a bullish outlook for the cryptocurrency, while investors shrugged off concerns surrounding the U.S. interest rates ahead of an inflation report.
Bitcoin rose 2.1% to $97,003.4 by 01:50 ET (06:50 GMT).
The token had risen sharply on Tuesday, rising above the $97,000 mark, but gave away some of the gains later in the day.
Bullish outlook, whale trades push Bitcoin higher
Several cryptocurrency analysts maintain a bullish outlook on Bitcoin's price trajectory, forecasting significant growth this year.
Analysts project Bitcoin's price could soar to between $175,000 and $461,000 by 2025.
Bitcoin advocate Tom Lee, head of research at Fundstrat, recently said that despite the short-term volatility, Bitcoin's outlook for 2025 remains positive with an end-of-year price target of $200,000 to $250,000.
Additionally, some analysts believe that favorable cryptocurrency policies anticipated from the incoming Donald Trump administration could propel Bitcoin's value to as high as $400,000. The establishment of a strategic Bitcoin reserve and the potential for increased mainstream adoption are cited as key drivers for this optimistic forecast.
On-chain analytics firm Santiment said that Bitcoin whales holding between 10 and 10,000 BTC have added 2,997 BTC to their holdings since January 1, 2025, reflecting growing confidence in Bitcoin's long-term potential.
Traders shrugged off fears related to the hawkish Federal Reserve ahead of key Consumer Price Index (CPI) data due later on Wednesday, as the central bank had already signaled fewer interest rate cuts in 2025 in its December meeting.
Crypto price today: most altcoins rise, XRP soars
In the broader cryptocurrency market, most altcoins jumped much more than Bitcoin, reflecting an increased risk-on sentiment.
World no.2 crypto Ether rose 1.4% to $3,225.25.
World no.3 crypto XRP surged 12.2% to $2.8387.
Solana was 1.6% higher, and Polygon rose 2.2%, while Cardano climbed 6.7%. Among meme tokens, Dogecoin jumped 4.4%.