Bitcoin in 2025 may experience a significant correction in Q1, but a decrease in sell-side liquidity hints at a possible upside in the medium term 📈. Bitfinex analysts note that the downward pressure predicted for Q1 may have already eased after the correction in December.

Bitcoin liquidity is falling to multi-month lows, as shown by the Liquidity Inventory Ratio. In October 2024, supply could meet demand for 41 months, but now it only meets demand for 6.6 months. Miners, who traditionally sell during halvings, have reduced their sales since April 2024, preferring to hold BTC.