The bearish momentum weighing on Bitcoin is showing signs of running out of steam, according to the latest market analyses. As the leading cryptocurrency hovers around the $95,000 mark, indicators point to a significant contraction in selling activity on exchange platforms.
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Selling pressure eases despite correction phase
The Bitcoin market is currently undergoing a significant transformation in its liquidity dynamics. According to a recent report by Bitfinex, the asset liquidity ratio has fallen dramatically from 41 months in October 2024 to just 6.5 months today. This metric, which measures the ability of available supply to meet demand on exchange platforms, suggests a gradual drying-up of Bitcoin supply on the market.
Analysts at Bitfinex point out that this contraction in liquidity is part of the continuity of the rallies observed in 2024, particularly in the first and fourth quarters. This situation creates a scarcity effect that could support the share price, despite the current market situation.
Another encouraging signal comes from behavior of minors of Bitcoin. The data show a significant decrease in Bitcoin transfers from miners to exchange platforms in early 2025. This retention is explained by the current profitability of mining and the market’s bullish outlook.
Miners are currently operating on a comfortable margin and prefer to hold on to their BTC rather than sell them.
A preference that persists in the short term
Despite these positive signals, the market continues to show strong pressure. On Wednesday January 8, Bitcoin recorded a correction of over 5%, bringing its price below the $94,600 mark. This drop is said to be linked to US macroeconomic data, particularly the JOLTS employment figures, as well as “spoofing” practices, i.e. manipulation of the order book by major market players.
Keith Alan, co-founder of Material Indicators stresses that these movements, although disruptive in the short term, remain “predictable”. This correction led to the liquidation of over $30 million in long positions in just one hour.
Analysts remain optimistic for the medium term. Bitfinex’s projections point to a target of $145,000 by mid-2025, with the potential to rise to $200,000 in a favorable scenario.
Despite the current correction mainly attributed to macroeconomic pressures, Bitcoin’s fundamentals remain solid. The ongoing contraction in available supply, combined with miners’ retention strategy, suggests that the crypto could maintain its bullish trajectory over the long term.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
