The Rise of Bitcoin
Bitcoin (BTC) has seen a 3% increase in value over the past 24 hours, reaching a monthly high of $97,822. This surge comes after a period of trading below the $95,000 mark for over a week.
Market Analysis
- Despite profit-taking by old whales, Bitcoin continues to show resilience in the market.
- Over-the-counter trading desks are seeing high volumes of negotiations, indicating short-term price fluctuations.
- Market analyst Ki Young Ju believes that buying pressure from U.S. institutions on Coinbase will drive the next leg up in Bitcoin’s price.
Price Movement
After hitting an all-time high above $108,000 in mid-December, Bitcoin retraced to $91,816.86 by the end of the month. The current recovery trend is pushing towards the $100,000 threshold.
Market Predictions
- Trader Rekt Capital suggests that Bitcoin typically experiences retracements after entering a price discovery phase.
- As Bitcoin clears historically corrective phases in price discovery, a bullish trend is expected to resume.
Analyst Insights
CryptoQuant’s community analyst, Avocado_onchain, views the current correction as a “cooling off” period in a larger bull market cycle. On-chain data suggests that a significant correction is unlikely in the near term.
On-Chain Data Analysis
- The Adjusted Spent Output Profit Ratio (SOPR) is trending downward, indicating decreasing profits for market participants.
- The Miner Position Index (MPI) shows that miners are holding onto their assets, despite occasional selling to cover expenses.
- Derivatives’ funding rates have decreased, signaling a potential rebound in Bitcoin’s price.
Market Outlook
While on-chain data supports a macro bullish movement, short-term price fluctuations remain unpredictable. Caution is advised as the market continues to evolve.
Bitcoin Market Data
As of January 2, 2025, Bitcoin is the leading cryptocurrency with a market cap of $1.92 trillion and a 24-hour trading volume of $46.13 billion. The total crypto market is valued at $3.4 trillion, with Bitcoin dominance at 56.35%.
