Bitcoin (BTC) Hostage to Dwindling Trading Volumes, But the Market Structure Remains Bullish

Bitcoin has been trading below the $100,000 mark for over ten days now. Several factors could be contributing to this, including post-holiday illiquidity and a glaring lack of trading volumes. However, experts agree that this ceiling is only a temporary hurdle. But what factors will finally propel the flagship cryptocurrency beyond this symbolic threshold? Let’s dive into the current forecasts and challenges of a market in search of breath.

Bitcoin, hostage to dwindling trading volumes

One of the major obstacles to the rebound of Bitcoin’s price remains the collapse of trading volumes. Indeed, with just $66.7 million traded daily as of January 3rd, the market is far from its peak of $743 million recorded on December 5th, when BTC first crossed the $100,000 mark.

Axel Adler, an analyst at CryptoQuant, summarizes the situation:

“For a strong impulse, we are lacking sufficient trading volume. We are waiting for the market to recover from the holiday period.”

However, the market structure remains bullish, a sign of imminent potential.

Some key figures:

If investors finally wake up, a new peak could be in sight by the end of the month.

Crypto Trading: Trump, ETF, and January Catalysts

Paradoxically, the imminent arrival of Donald Trump at the White House could inject an unexpected breath into the crypto market. Expectations surround more favorable economic and regulatory policies, although Bitfinex remains cautious: the inauguration would not act as an immediate engine for BTC’s price.

Another major lever is the rise of Bitcoin ETF, which total nearly $110 billion in assets under management. This institutional adoption could enhance Bitcoin’s appeal to traditional investors.

Finally, the outlook for 2025 remains optimistic, with price predictions reaching up to $200,000, driven by a growing risk appetite in a changing economic environment.

Thus, the report by Bravo Research, which predicts a correction to $80,000 as a “game changer”, raises an intriguing truth: an attractive price would open the door to new investors. It remains to be seen if this scenario will prevail against still hesitant markets.

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