Bitcoin needs trading volume to push above $105,000 in January

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Bitcoin's daily trading volume has currently dropped to $66.7 million, down 91% from the $743 million when it broke the $100,000 mark on December 5. Although the holiday-induced lack of market liquidity caused a price pullback in December, analysts still predict that Bitcoin's price will experience a recovery. On December 17, Bitcoin's price reached an all-time high of $108,300, but has since fallen over 10%, currently trading at $97,820. Since December 19, Bitcoin’s trading price has not exceeded $100,000.

Bitfinex analysts believe that despite the current sluggish trend, Bitcoin may climb to $105,000 in January. In an interview with Cointelegraph, analysts stated, “We expect Bitcoin to fluctuate within a range, with investors diversifying their funds across multiple asset classes. By the end of January, we expect Bitcoin's price to be between $95,000 and $110,000.”

President Trump will be inaugurated on January 20, an event that could be an important catalyst for the cryptocurrency market. There are expectations that the new government will introduce more favorable regulations for cryptocurrencies and promote improvements in economic policy. However, Bitfinex analysts pointed out that Trump’s inauguration may not immediately drive cryptocurrency prices up. They stated, “Although we expect the new president to promote the growth of cryptocurrency policy, the inauguration itself is not seen as an opportunity for a price surge; rather, it may pave the way for the U.S. cryptocurrency industry.”

Analysts previously predicted that Bitcoin's price would reach a maximum of $200,000 by 2025, largely due to the thriving development of U.S. spot Bitcoin exchange-traded funds (ETFs), which currently manage assets nearing $110 billion.

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