Key Takeaways
Bitcoin has reclaimed the $100,000 mark as 2025 begins, driven by strong market momentum and a tightening of sell-side liquidity. According to Bitfinex, the Liquidity Inventory Ratio has dropped significantly, indicating a tightening of Bitcoin’s available supply and growing demand. This surge follows a 61% rally in late 2024, fueled by optimism over Donald Trump’s election as the 47th US president. The reduced activity of miners, who are holding onto their BTC amid favorable market conditions, has also contributed to this trend. CryptoQuant’s metrics suggest that the crypto market is entering the later stages of the current bull cycle, with a peak expected by Q1 or Q2 2025. However, analysts caution against overexuberance and highlight the risks of market overheating. Bitcoin’s resurgence is further supported by positive macroeconomic trends in the US labor market, although uncertainties in sectors such as manufacturing and construction add complexity to market sentiment.
