According to BlockBeats, on January 6, Bitfinex released a report stating, 'We see the market remains strong. Although a deeper pullback may occur in the first quarter of 2025, the bullish sentiment from miners and the overall tightening of supply indicate that Bitcoin has good upward potential in the medium term.'
The Liquidity Inventory Ratio, which indicates the duration that the existing supply meets demand, has plummeted from 41 months in October to just 6.6 months. This indicates a rapid tightening of Bitcoin liquidity, particularly evident during the strong rebounds in the first and fourth quarters of 2024.
Bitcoin miners, historically important sellers during halving periods, have reduced their Bitcoin inflows to exchanges since April 2024. The liquidity from miners to exchanges is at a multi-year low, as their unrealized profits remain strong, leading them to choose to hold Bitcoin rather than sell.
The overall selling pressure from miners, long-term holders, and other groups has significantly decreased. The supply entering circulation in the market has reduced, alleviating the impact of the recent pullback.
