Bitcoin Surges Past $102,000 Amid Market Rally
Bitcoin (BTC) has once again crossed the $102,000 mark on Jan. 6, with a 4% increase over the day. This surge comes as accumulation outweighs profit-taking, according to data from CryptoSlate.
Market Recovery and Sell-Side Liquidity
The flagship cryptocurrency was trading at $101,630 at the time of writing, showing signs of recovery after failing to maintain upward momentum when US markets closed. The latest Bitfinex Alpha report indicates a decrease in sell-side liquidity, contributing to Bitcoin’s price movement.
Following a 15% correction from its all-time high of $108,100 on Dec. 17, 2024, Bitcoin’s return to the $102,000 range signals a resurgence after a 61% rally post-US election results on Nov. 6, 2024.
Sell-Side Liquidity Trends
The decline in sell-side liquidity is a key driver of Bitcoin’s price action, with the Liquidity Inventory Ratio dropping from 41 months to 6.6 months since October. This trend indicates constrained availability during periods of high demand, similar to previous rallies in 2024.
Miners and Liquidity Dynamics
Miners, a significant source of sell-side pressure, have reduced spot selling post the 2024 halving event. This behavior, coupled with miners holding onto their BTC holdings due to anticipated price increases, has further tightened liquidity and supported Bitcoin’s upward trajectory.
Overall, miners retaining their BTC holdings and favorable market conditions suggest a positive outlook for Bitcoin’s price movement.
Positive Start to 2025
Bitcoin’s strong start to 2025 is backed by positive on-chain metrics, with diminishing sell-side liquidity playing a crucial role in its price movement. Despite lingering risks of a pullback, the low liquidity metrics and miner confidence indicate a potential for further gains.
Bitcoin Market Data
As of 10:10 pm UTC on Jan. 6, 2025, Bitcoin is ranked #1 by market cap, with a price increase of 3.33% over the past 24 hours. The cryptocurrency has a market capitalization of $2.01 trillion and a 24-hour trading volume of $51.66 billion.
Crypto Market Summary
At the same time, the total crypto market is valued at $3.58 trillion, with a 24-hour volume of $132.93 billion. Bitcoin dominance stands at 56.23%.
