Foresight News reports that according to a Bitfinex analyst report, Bitcoin may not see a significant downward trend in the short term as the sell-off activity on cryptocurrency exchanges is 'rapidly diminishing.' The liquidity inventory ratio of Bitcoin has dropped from 41 months in October 2024 to just 6.5 months, which is considered positive for market traders. The report notes that tightening liquidity typically enhances the scarcity effect of assets, thereby driving prices upward. Meanwhile, the amount of Bitcoin flowing from miners to exchanges has sharply decreased, indicating that miners are optimistic about the continued rise in Bitcoin prices and are choosing to hold rather than sell.
Glassnode analyst James Check added that while selling pressure is easing, demand indicators are also slowing down, with spot trading volume declining by 53% since November. Analysts expect that by mid-2025, the price of Bitcoin could reach a range of $145,000 to $200,000.
