Amid declining exchange liquidity, Bitcoin shows positive signals for investors.
Declining Liquidity and Its Consequences
Bitfinex analysts noted a significant drop in Bitcoin's liquidity, creating a scarcity effect that drives its price up. The liquidity dropped from 41 months to 6.5 months, boosting market rallies.
The Market in the New Year: Prospects and Challenges
On January 6, Bitcoin's price returned to the $100,000 mark but dropped to $96,261 within 24 hours. Analysts observe pronounced price volatility at the start and end of the year.
Slowing Demand and Miners' Confidence
Despite decreasing sell-side pressure from Bitcoin holders, demand indicators also decreased. Miners, remaining profitable, prefer to hold their assets anticipating price growth. Analysts predict Bitcoin's price to reach $145,000 by mid-2025, potentially stretching to $200,000.
The current Bitcoin market scenario indicates positive forecasts despite falling demand and volatility. The reduction in liquidity and asset retention by miners is expected to positively influence Bitcoin's value.
