The world's largest cryptocurrency is expected to make a renewed attempt to breakthrough the $100K level in the near term, the report said.

What to know:

– The bitcoin bull market is not over, Galaxy Research said.
– Galaxy said the world's largest cryptocurrency is expected to retest the $100K level in the near term.
– The report said increasing institutional adoption and the potential for the creation of bitcoin nation-state reserves mean the crypto should continue its ascent higher.

The bitcoin (BTC) bull market has further to run, and the world's largest cryptocurrency is expected to punch through the $100,000 level in the near term, Galaxy Research said in a note on Tuesday.

Galaxy said bitcoin will continue to rise for several reasons.

Increasing institutional and corporate adoption, the potential for the creation of bitcoin nation-state reserves, and a new pro-crypto U.S. administration all point to a move higher in the near and medium term, the report said.

It may not be all plain sailing, as "there could even be some twilight regulatory or law enforcement actions from the outgoing Biden administration that jitter markets," wrote Alex Thorn, head of research at Galaxy.

Still, the bitcoin setup over the next two years "appears unique and bullish," the analyst wrote.

The options market positioning is also bullish, the report noted.

The launch of bitcoin exchange-traded fund (ETF) options could result in greater liquidity and potentially lower volatility, Galaxy said. This could entice larger institutions to enter the market while spurring retail demand.

Bitcoin was trading about 2.8% higher at around $94,600 at publication time, while the broader digital assets index, CoinDesk20 (CD 20), was up more than 3%.