Bitcoin is experiencing reduced downward pressure in the short term as sell-side liquidity diminishes significantly. Analysts at Bitfinex noted a rapid drop in Bitcoin's liquidity inventory ratio, which decreased from 41 months in October 2024 to just over 6.5 months. This tightening supply could create a scarcity effect, potentially driving prices higher. As of January 6, Bitcoin's price bounced back to around $100,000 before retracting to approximately $96,880. Market analysts observed that miners are holding onto their BTC rather than selling, expecting prices to rise, with projections estimating prices might reach $145,000 by mid-2025 under favorable conditions. However, while selling pressure from holders has eased, demand indications show a slowdown, with a reported 53% decrease in spot trading volume since November 2024.

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