Bitcoin reached an all-time high of $108,000 on Dec. 17, 2024, but has since dropped by over 10%.
Bitcoin reached an all-time high of $108,000 on Dec. 17, 2024, but has since dropped by over 10%. Exchange inflows and miner outflows, key indicators of market pressure, have seen a notable decline since November 2024. Data from CoinMarketCap shows that Bitcoin exchange inflows peaked at 98,748 BTC on Nov. 25, 2024, after a period of elevated inflow activity. However, by December 2024, the number of Bitcoin sent to exchanges dropped, with daily inflows fluctuating between 11,000 and 79,000 BTC.
This reduction in exchange inflows coincided with a decline in miner outflows, typically observed when miners sell Bitcoin to cover operational costs. In November 2024, miner outflows reached their highest level of the year, peaking at 25,367 BTC on Nov. 11, 2024, as Bitcoin’s price approached $88,000. By January 2025, miner outflows had significantly decreased. On Jan. 1, 2025, miners sent 5,489 BTC to exchanges, with the numbers dropping further to 5,748 BTC on Jan. 2, 2025, and 2,133 BTC on Jan. 3, 2025. This suggests less selling pressure from miners.
Analysts have pointed out that for Bitcoin to break through resistance levels and reach a higher price range in 2025, there is a need for an increase in daily trading volume. Axel Adler, a market analyst, stated on Jan. 4, 2025, that while the market remains bullish, there is insufficient trading volume to trigger a significant upward movement. The market is currently facing resistance in the $95,000-$110,000 range, according to Bitfinex analysts who expect Bitcoin to trade within this range throughout January.
Another significant factor impacting Bitcoin’s outlook is the movement of Bitcoin exchange-traded funds (ETFs). After several days of large outflows, Bitcoin ETFs saw $900 million in inflows on Jan. 3, 2025, signaling renewed interest in Bitcoin from institutional investors and traditional finance sectors. This shift in ETF flows could be a positive sign for Bitcoin’s price recovery.
Despite the decline in exchange inflows and miner outflows, which suggest reduced selling pressure, Bitcoin still needs an increase in trading volume to push past its resistance levels. The recent drop in miner outflows may help reduce selling pressure, but without sufficient trading volume, Bitcoin may struggle to reclaim its $100,000 mark in the near term.
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