The Bitcoin price may be poised for a significant rally in the coming days, bolstered by a new all-time high of stablecoin reserves on cryptocurrency exchange Binance.
BTC’s 10% Correction and Potential Rally
According to Cointelegraph Markets Pro data, BTC has corrected by around 10% from its recent all-time high of $108,300 recorded on December 17. However, this correction may be setting up for a breakout above $120,000.
Incoming FTX Repayments and US Stock Market Performance
To gauge the performance of Bitcoin in January, investors should keep an eye on several key factors:
- Spot Bitcoin exchange-traded fund (ETF) inflows: The performance of these funds can provide valuable insights into market sentiment.
- US stock market performance: As Bitcoin is heavily correlated with traditional markets, a strong US stock market could bode well for BTC’s price action.
- Incoming FTX repayments scheduled for January 3: These repayments could bring much-needed liquidity to the market and help stabilize prices.
Binance’s $45 Billion Stablecoin Reserves: A Potential Fuel for BTC’s Rally
The stablecoin reserves on Binance have surpassed $44.5 billion, nearing the all-time high of $45.8 billion registered on December 11. This significant accumulation of stablecoins can signal incoming buying pressure and growing investor appetite.
Increasing Stablecoin Inflows: A Key Driver for Bitcoin’s Rally
As stablecoins are the main investor on-ramp from fiat to the crypto world, increasing inflows to crypto exchanges can be a strong indicator of market sentiment. This could lead to a surge in demand for BTC and drive prices higher.
Overcoming Significant Resistance Above $95,000 and $96,400
To break above $120,000, Bitcoin needs to overcome significant resistance levels at $95,000 and $96,400. A move above this level would liquidate over $1.24 billion worth of leveraged short positions across all crypto exchanges.
Analysts Remain Optimistic about Bitcoin’s 2025 Trajectory
Despite the potential for a correction, analysts remain optimistic about Bitcoin’s 2025 trajectory. Some predict a rally to $160,000 driven by improving US financial policy and increasing adoption of cryptocurrencies.
BTC Hits $100K, Trump Taps Paul Atkins for SEC Chair, and More: Hodler’s Digest, Dec. 1 – 7
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GMI Total Liquidity Index: A Key Indicator for Bitcoin’s Price Action
The GMI total liquidity index is a key indicator that can provide valuable insights into market sentiment. According to Raoul Pal, based on this index, BTC could peak at a local top above $110,000 in January before a potential correction.
Confirmed Bitcoin Payments Hit Yearly Low Due to Holiday Illiquidity
As the holiday season brings reduced trading activity and lower liquidity, confirmed Bitcoin payments have hit a yearly low. This could lead to increased volatility and price movements when markets return to normal.
Ethereum Shorter Gains $1.1M on 50X Leverage in 2 Days
In related news, Ethereum’s shorter has gained $1.1 million on 50x leverage in just two days. This demonstrates the high-risk, high-reward nature of leveraged trading and the importance of proper risk management.
Magazine: BTC Hits $100K, Trump Taps Paul Atkins for SEC Chair, and More: Hodler’s Digest, Dec. 1 – 7
Explore more articles like this on Cointelegraph’s Finance Redefined newsletter.
Subscribe to the Finance Redefined Newsletter
A weekly toolkit that breaks down the latest DeFi developments, offers sharp analysis, and uncovers new financial opportunities to help you make smart decisions with confidence. Delivered every Friday.
By subscribing, you agree to our Terms of Service and Privacy Policy.
