Bitcoin (BTC) Market Analysis – January 11, 2025

Bitcoin price is trading about 7% above the Short-Term Holder (STH) cost-basis of $88,135, according to on-chain data firm Glassnode on Jan.10.

This metric serves as a crucial indicator of sentiment among new investors in the market. Historically, the STH cost-basis has aligned with market lows during bull runs and also helped differentiate between bullish and bearish cycles.

If the price dips and stabilizes below the STH cost-basis, it could be signaling declining sentiment among new investors, which is often seen as a common indicator of potential trend shifts in the market.

Bitcoin price found support at $90,000 on Jan.10. A closer look at the price reveals a significant gap in on-chain support levels.

As Bitcoin price continues to rally, traders and investors are keeping a close eye on the key levels that could influence the market. On-chain data reveals a $12,000 void between $87,000 and $75,000, highlighting the importance of maintaining price momentum above crucial support zones.

U.S. Department of Justice to sell roughly $6.5 billion in Bitcoin seized from Silk Road, related cases

The U.S. Department of Justice is preparing to sell a portion of the Bitcoin that was seized from Silk Road and related cases, according to a report on Jan.10.

The DOJ is said to be planning to sell roughly $6.5 billion in Bitcoin, which is part of the total 198,000 BTC that the DOJ has seized over the years. The sale of such a large amount of Bitcoin in a short period of time could have a significant impact on the market liquidity and price stability in the short term.

Bitcoin price rally continues as MicroStrategy adds $101 million to its holdings

Business intelligence firm MicroStrategy continues to make smaller, yet strategic, Bitcoin acquisitions.

On Jan.11, the company's latest $101 million purchase brings its total Bitcoin holdings to 2.1% of the total circulating supply, further solidifying its position as a major Bitcoin holder and reflecting a long-term bullish outlook on the world’s leading digital asset, as it sells bonds to fund the never-ending Bitcoin accumulation spree.

Bitcoin spot ETFs saw a net outflow of $149 million on Jan.10, with most of the outflows coming from the smaller and newer Bitcoin spot ETFs, according to data from Finbold on Jan.11.

However, Fidelity (NYSE:FBK) seems to be bucking the trend, with its FBTC ETF recording a net inflow of $16.57 million on a single day, standing out from the broader institutional outflows.