According to Bitfinex's latest report, with Bitcoin recently hitting an all-time high of over $104,000, the market continues to show strong momentum. While a deeper correction is still possible in the first quarter of 2025, the widespread tightening of supply and bullish sentiment among miners indicate that Bitcoin is expected to rise further in the medium term. The liquidity inventory ratio (which tracks how long the existing supply can meet demand) has dropped from 41 months in October to just 6.6 months, suggesting that the available Bitcoin liquidity is rapidly tightening, particularly evident during the strong rebounds in the first and fourth quarters of 2024.
Bitcoin miners are significant sellers during halving periods in history, but since April 2024, they have also slowed the flow of BTC to exchanges. As miners operate without realizing substantial profits and hold BTC instead of selling, the flow of miners to exchanges is at its lowest level in years. The overall selling pressure from miners, long-term holders, and other groups has significantly eased, and the reduced supply entering the market has mitigated the impact of recent adjustments.
