Bitcoin's recent market activity shows declining selling pressure, driven by sharp drops in both exchange inflows and miner outflows. These trends could set the stage for Bitcoin to reclaim the $100,000 milestone.

Exchange Inflows and Miner Outflows Decline

Recent data from CryptoQuant highlights a notable reduction in Bitcoin's exchange inflows—the amount of BTC transferred to trading platforms—and miner outflows—the BTC sold by miners.

Exchange Inflows:

After peaking at 98,748 BTC on Nov. 25, 2024, inflows have significantly declined, fluctuating between 11,000 and 79,000 BTC daily in December. This decline signals a slowdown in selling activity compared to the previous two months of heightened movement.

Miner Outflows:

Similarly, miner activity has cooled after profit-taking during Bitcoin's rally post-Donald Trump's election victory. Miner outflows peaked at 25,367 BTC on Nov. 11, when Bitcoin surged to $88,000. By January 2025, daily outflows dropped considerably, with miners transferring 5,489 BTC on Jan. 1, 5,748 BTC on Jan. 2, and just 2,133 BTC on Jan. 3.

What’s Needed for Bitcoin’s $100K Breakout?

Despite the bullish sentiment, Bitcoin requires stronger trading volume to overcome key resistance levels. Analysts remain optimistic but emphasize the importance of sustained market activity.

Analyst Insights:

Axel Adler, a leading market expert, highlighted in his Jan. 4 analysis that the current market structure is bullish but lacks the trading volume for a robust rally. Adler noted, “We expect a recovery post-holiday season.”

Institutional Interest Rising:

Bitcoin ETFs have seen a resurgence, with $900 million in inflows recorded on Jan. 3, showcasing renewed interest from institutional investors. This shift suggests traditional finance players are betting on Bitcoin's continued rise.

Outlook for January

With Bitfinex analysts forecasting Bitcoin’s price to range between $95,000 and $110,000 this month, market momentum will be critical. Reduced selling pressure, coupled with growing institutional interest, could act as a catalyst for the next leg up.

Conclusion

Bitcoin’s fundamentals appear strong, with declining exchange inflows and miner outflows reducing selling pressure. Combined with renewed institutional participation, these factors set the stage for Bitcoin to potentially reclaim $100,000. However, sustained trading volume will be the key driver for achieving this milestone.

$BTC

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