Bitcoin Reclaims $100,000 Mark as Market Momentum Builds
As the year 2025 begins, Bitcoin has successfully reclaimed the $100,000 mark, driven by strong market momentum and a significant tightening of sell-side liquidity. According to the latest Bitfinex report, the Liquidity Inventory Ratio has dropped from 41 months in October to just 6.6 months, reflecting a substantial decline in Bitcoin’s available supply.
Miners Hold onto BTC, Reducing Sell-Side Pressure
A key factor contributing to this trend is miners’ reduced activity, with miner-to-exchange flows now at multi-year lows. The 2024 halving reduced rewards, prompting miners to hold their BTC amid favorable market conditions, tightening supply and supporting prices. This reduced sell-side pressure has played a crucial role in Bitcoin’s surge past $100,000.
CryptoQuant Forecasts Market Top by Q1 or Early Q2 2025
CryptoQuant’s metrics indicate that the crypto market is entering the later stages of the current bull cycle, which began in January 2023. Analyst CryptoDan notes that 36% of Bitcoin’s supply has been traded within the past month, a sign of increased market activity. While this figure is lower than previous cycle peaks, it suggests that the market is likely nearing its zenith, with a peak expected by Q1 or Q2 2025.
Risk Management Key as Market Approaches Peak
CryptoDan cautions against overexuberance, emphasizing the risks of market overheating as it approaches the peak. “Substantial gains in Bitcoin and altcoins are still possible, but risk management is key at this stage. I plan to gradually sell my holdings,” he explained. This warning serves as a reminder for investors to remain vigilant and adapt their strategies as the market continues to evolve.
Broader Macroeconomic Trends Support Bitcoin’s Resurgence
Bitcoin’s resurgence to $100,000 is also supported by broader macroeconomic trends. The US labor market ended 2024 on a strong note, bolstering risk-on asset demand. However, uncertainties in sectors such as manufacturing and construction present mixed signals, adding a layer of complexity to market sentiment.
Conclusion
In conclusion, Bitcoin’s reclaiming of the $100,000 mark is driven by a combination of strong market momentum, reduced sell-side liquidity, and favorable macroeconomic trends. As the market approaches its peak, investors must remain cautious and adapt their strategies to mitigate potential risks. With CryptoQuant forecasting a market top by Q1 or early Q2 2025, it is essential to prioritize risk management and remain informed about the latest market developments.
Source: Cryptobriefing.com
The post Bitcoin Reclaims $100K: Miners Hold Tight Amid Bull Run appeared first on CoinBuzzFeed.
