
After a rapid surge to $100,000, Bitcoin loses ground
January 08, 2025
The leading cryptocurrency unexpectedly retreated from the $100,000 level, losing 6% in a single day. As of writing, Bitcoin is trading at $95,500, with a market capitalization of $1.89 trillion.
Coinglass data shows that over the last 24 hours, liquidation volumes amounted to $690 million, with $631 million coming from long positions. The mass sell-off triggered price declines for other top-10 cryptocurrencies. Ethereum (ETH) fell by 9% to $3,330, while Solana (SOL) dropped 9.8%, dipping below $200. Dogecoin (DOGE) and Cardano (ADA) also declined by 12.5% and 11.6%, respectively.
Expert opinions
Analysts attribute BTC's drop to external factors. Min Chung of Presto Research noted that macroeconomic uncertainty driven by concerns about persistent inflation negatively impacts the crypto market.
The situation is further exacerbated by volatility stemming from political events in the U.S. The inauguration of Donald Trump, scheduled for January 20, could increase pressure on financial markets, including cryptocurrencies.
Glassnode analyst James Check highlighted a decrease in demand for Bitcoin. According to his data, spot trading volumes have dropped by 54% since November. While the pace of sales has slowed, the influx of new investors remains low.
Analysis and forecasts
Technical analyst Ali Martinez previously identified the $104,700–$105,770 range as a crucial resistance zone. Breaking through this level could pave the way for new highs. However, current macroeconomic conditions pose significant obstacles to recovery.
In the long term, forecasts remain optimistic. Galaxy Research expects the crypto asset to reach $150,000 in the first half of 2025, with its price potentially climbing to $185,000 in the second half of the year.