Key Takeaways
Bitcoin has reclaimed the $100,000 mark as 2025 begins, driven by strong market momentum and a tightening of sell-side liquidity. Bitfinex has revealed that miners are holding onto their BTC, contributing to the decrease in available supply. The Liquidity Inventory Ratio has dropped significantly, indicating growing demand outpacing sell-side liquidity. This surge follows a 61% rally in late 2024, fueled by optimism over Donald Trump’s election. Bitcoin reached an all-time high of $108,100 in December before experiencing a 15% correction. However, it quickly recovered as sell-side pressures eased. The reduced activity of miners, prompted by the 2024 halving, has tightened supply and supported prices. CryptoQuant’s metrics suggest that the crypto market is entering the later stages of the current bull cycle. Analyst CryptoDan notes that 36% of Bitcoin’s supply has been traded within the past month, indicating increased market activity. However, he cautions against overexuberance and emphasizes the risks of market overheating. Bitcoin’s resurgence to $100,000 is also supported by positive macroeconomic trends, particularly in the US labor market. Despite uncertainties in sectors such as manufacturing and construction, market sentiment remains complex.
