As the year draws to a close, Bitcoin analysts are predicting an imminent recovery rally despite signs of holiday-driven market illiquidity that contributed to December’s price correction.
Current Market Performance
Bitcoin (BTC) is currently trading under $100,000, having slipped below this milestone on Dec. 19. The world’s first cryptocurrency has been unable to regain its footing above $108,300, its all-time high recorded on Dec. 17. According to Cointelegraph Markets Pro data, BTC/USD is still hovering around $95,000.
Range-Bound Markets Ahead?
Despite the subdued momentum, Bitfinex analysts are predicting that Bitcoin could climb as high as $105,000 in January. In an interview with Cointelegraph, they stated:
"We expect Bitcoin to see range-bound markets as investors look to deploy capital across a range of different asset classes. We see Bitcoin ranging between $95,000 and $110,000 by the end of January."
US Presidential Inauguration: A Catalyst for Cryptocurrency Prices?
The upcoming inauguration of United States President-elect Donald Trump on Jan. 20 is expected to be a significant catalyst for cryptocurrency prices. Expectations include more crypto-friendly regulations and improved economic policies in the US.
However, Bitfinex analysts caution that the new presidency may not lead to an immediate crypto rally:
"We expect the new presidency to bring more clarity to crypto policies, however, we do not see the inauguration as a significant price appreciation event but rather the pre-cursor to forging a less obstructed pathway for crypto in the US."
Predictions for 2025: $200,000 Bitcoin Price Top
Analyst calls for a $200,000 Bitcoin price top during 2025 are gaining traction, bolstered by the record-breaking growth of the US spot Bitcoin exchange-traded funds (ETFs), which are nearing $110 billion in assets under management.
Recovery Requires Increased Trading Volume
Despite the optimistic price trajectory, Bitcoin remains bound by holiday-driven market illiquidity. According to CryptoQuant analyst Axel Adler:
"For a strong impulse, we lack sufficient trading volume. Therefore, we are waiting for the market to recover from the holiday season."
Adler’s comments highlight the importance of increased trading volume in staging a recovery rally above the six-figure mark.
Current Trading Volume: A Cause for Concern
Bitcoin saw over $66.7 million worth of daily trading volume on Jan. 3, which is 91% lower than its $743 million volume on Dec. 5 when it first surpassed the $100,000 milestone.
Analyst Predictions Ranging from $160,000 to $200,000
Despite the challenges posed by holiday-driven market illiquidity, analysts remain optimistic about Bitcoin’s 2025 trajectory. Predictions ranging from $160,000 to $200,000 are driven by growing risk appetite among investors thanks to expectations of improving US financial policy.
Mark Yusko’s 2025 Predictions
Magazine: Will ETH outperform BTC in Jan? IRS DeFi broker rules, and more: Hodler’s Digest, Dec. 22–28
In conclusion, while holiday-driven market illiquidity has contributed to December’s price correction, Bitcoin analysts are forecasting an imminent recovery rally. As the year draws to a close, investors will be watching closely for signs of increased trading volume and improved market momentum.
Additional Resources:
- Cointelegraph Markets Pro data
- Bitfinex analyst interview with Cointelegraph
- CryptoQuant analyst Axel Adler’s post on X
- Magazines articles:
- Will ETH outperform BTC in Jan?
- IRS DeFi broker rules, and more: Hodler’s Digest, Dec. 22–28
