According to CryptoSlate, Bitcoin (BTC), reclaimed $102,000 on January 6th after climbing 4% in a day-long rally amid an overall market rally. Profit taking continues to be outpaced by accumulation.
At press time, the flagship crypto had fallen to $101,630 following a lack of upward movement as US markets were closed. According to Bitfinex Alpha, the recovery is occurring as selling-side liquidity continues shrinking. Reportage.
Bitcoin’s return to the $102,000 range comes after a sharp 15% correction from its all-time high (ATH) of $108,100, achieved on Dec. 17, 2024. After a strong 61% rise in the market on Nov. 6, 20,24 due to US elections results, this correction was accompanied by a sharp 15% drop.
Although analysts expected a further pullback during the first quarter of this year, the report highlighted that new metrics suggested the negative pressure has largely abated.
Sell-side liquidity at record lows
A key driver of Bitcoin’s price action is the rapid decline in sell-side liquidity. Liquidity inventory ratio, which measures how long current supply will satisfy the market, fell from 41 months to just 6.6 months.
This steep drop mirrors the liquidity tightening seen during Bitcoin’s rallies in the first and fourth quarters of last year, signaling constrained availability during periods of heightened demand.
Additionally, miners — a significant source of sell-side pressure — have contributed to the current liquidity dynamics, as their spot selling has diminished after the 2024 halving.
In the past, Bitcoin was sold by miners to finance operations and upgrade machinery. However, since April 2024, miner-to exchange flows have decreased significantly. Although the number of miner’s flows rose in November 2011, they are still well below their previous highs.
Bitfinex reports that miners have a solid position now, with unrealized gains. This holding behavior has further tightened liquidity, bolstering Bitcoin’s upward trajectory.
Data suggests that miners are holding onto their BTC as they expect higher prices, or to maximize their position in favorable market conditions.
Beginning strong
This report shows that Bitcoin will start 2025 with a solid footing. Positive on-chain metrics are reflected in the study. It added that the interplay between diminishing sell-side liquidity will remain a pivotal factor in Bitcoin’s price movement.
Although the possibility of further declines still exists, the fact that liquidity measures are at multi-year highs and the confidence of miners is reflected in their stock holdings suggests that the pressure on the market has fallen. This could lead to potential gains.
Bitcoin Market Data
The time of the press The UTC time zone for Jan. 6, 2020 is 10:10 p.m.Bitcoin’s market capitalization is the highest in the world. You may also like: 3.33% Over the past 24 hour. Bitcoin’s market capitalization is 2.01 trillion With a daily trading volume of $16,6 Billion. Learn more about Bitcoin ›
Bitcoin
On Jan. 6, 2025, 10:10 PM UTC
$101,678.38
3.33% Crypto Market Analysis
The time of the press On Jan. 6, 2025, 10:10 PM UTC. The value of the crypto market total is estimated at 3.58 trillion dollars With a volume of 24 hours. $132.93 trillion. Bitcoin dominates the market at 56.23%. Learn more about the crypto market ›
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
