Data from Blocktrends and CryptoQuant shows that these large holders strategically purchased BTC worth approximately $3.2 billion after a sharp market dip triggered by Bitcoin’s peak of over $108,000 on December 17, 2024.
December Sell-Off: A Calculated Move?In the days after Bitcoin’s peak, wallets holding 1,000 to 10,000 BTC collectively sold 79,000 BTC, triggering a 15% correction. According to Blocktrends’ head of research, Cauê Oliveira, this sell-off coincided with the U.S. Federal Reserve’s interest rate cut. However, these same institutional players returned to the market, taking advantage of prices below $95,000 to rebuild their positions through smaller, fragmented trades.
Bitcoin’s seven-day balance change turns positive following a late-December sell-off of nearly 80,000 BTC, signaling renewed market activity. Source: CryptoQuant
“This calculated accumulation underscores the strategic approach of large players who capitalize on market consolidations,” Oliveira explained in a January 8 CryptoQuant post.
Market Signals: A Shift Toward RecoveryBitcoin’s seven-day balance change has flipped positive following the late-December sell-off. This indicates renewed buying pressure, which could help stabilize the market. By January 7, Bitcoin was trading around $94,900, down 2.3% for the day amidst broader market weakness caused by U.S. economic data.
Bitfinex analysts also noted a sharp reduction in sell-side liquidity, suggesting that the worst of the downward price pressure might be over. “Shrinking liquidity often foreshadows a period of stabilization,” they stated in a January 6 market note.
Pro-Crypto Policies Fuel OptimismThe incoming U.S. administration under President-elect Donald Trump is expected to adopt pro-crypto policies, further boosting market confidence. Fidelity Digital Assets anticipates that central banks, sovereign wealth funds, and government treasuries will increasingly view Bitcoin as a strategic asset.
In a recent research paper, Fidelity analyst Matt Hogan stated, “More institutional players are likely to allocate Bitcoin in their portfolios, setting the stage for a potential rally.”
Price Predictions: Can Bitcoin Reach New Heights?Experts offer varied predictions for Bitcoin’s trajectory in 2025. Blockware analysts suggest that if the U.S. government adopts a Bitcoin reserve, prices could surge to between $150,000 and $400,000.
Bitcoin (BTC) price chart. Source:Bitcoin Liquid Index (BLX) via Brave New Coin
However, some bearish indicators remain. Bitcoin recently formed a bearish engulfing candle after briefly testing the $100,000 mark, signaling the possibility of further corrections below $90,000. Analysts warn that historical data shows only a 20% likelihood of immediate recovery after dips exceeding 5%.
Stablecoins and Market LiquidityCrypto analyst Miles Deutscher highlighted the growing supply of stablecoins, which could enhance market liquidity. “Stablecoins entering price discovery often precede significant moves in Bitcoin,” he noted.
Meanwhile, Jamie Coutts pointed out Bitcoin’s resilience despite the strengthening U.S. dollar, indicating robust demand. Still, short-term volatility remains a concern as traders eye support levels between $90,000 and $92,000.
Looking AheadBitcoin’s recent price movements illustrate its volatile and dynamic nature. Institutional accumulation is providing much-needed support for recovery, but bearish technical patterns and broader market factors suggest caution.
As pro-crypto policies and increasing institutional adoption shape the market, Bitcoin’s long-term outlook for 2025 is promising with Trump’s inauguration just days away. However, traders should remain prepared for potential price swings in the weeks ahead. But for new investors new to crypto? Those who are wondering what crypto to buy right now? Well, Bitcoin remains the safest bet, especially if you’ve got a long time horizon of ten years or more.
The numbers don’t lie, and they show that Bitcoin is clearly the best performing asset over a long time period. Source: Casebitcoin
