Bitcoin Needs Trading Volume Boost to Rally Above $105,000 in January
As the cryptocurrency market navigates through the holiday season, Bitcoin (BTC) analysts are predicting an imminent recovery rally despite signs of decreased trading volume and market illiquidity that contributed to December’s price correction.
Current Price Performance
Bitcoin is currently trading at a significant discount from its all-time high of $108,300 recorded on Dec. 17, with the cryptocurrency down over 10% since then. According to Cointelegraph Markets Pro data, BTC has been trading under $100,000 since Dec. 19.
- BTC/USD, 1-month chart: Source: Cointelegraph
Range-Bound Markets Ahead?
Despite the subdued momentum, Bitcoin could climb as high as $105,000 in January, according to analysts at Bitfinex. They expect investors to deploy capital across a range of asset classes, leading to range-bound markets.
"We see Bitcoin ranging between $95,000 and $110,000 by the end of January," said Bitfinex analysts in an interview with Cointelegraph.
Trump’s Inauguration: A Catalyst for Crypto Prices?
The inauguration of United States President-elect Donald Trump on Jan. 20 may have a significant impact on cryptocurrency prices. Expectations include more crypto-friendly regulations and improved economic policies in the US.
However, Bitfinex analysts caution that Trump’s inauguration 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," they said.
The Road Ahead: A $200,000 Bitcoin Price Top
The predictions follow analyst calls for a $200,000 Bitcoin price top during 2025. This forecast is bolstered by the record-breaking growth of the US spot Bitcoin exchange-traded funds (ETFs), which are nearing $110 billion in assets under management.
- Top Crypto Investments in 2025: Bitcoin, AI Projects, Tokenized Assets
Recovery Requires Increased Trading Volume
Despite the optimistic price trajectory, Bitcoin remains bound by holiday-driven market illiquidity. To stage a recovery rally above the six-figure mark, Bitcoin still needs to accumulate more trading volume.
As CryptoQuant analyst Axel Adler wrote in a Jan. 4 post on X:
"For a strong impulse, we lack sufficient trading volume. Therefore, we are waiting for the market to recover from the holiday season."
The Current State of Trading Volume
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.
- BTC/USD, 1-day chart: 24-hour trading volume. Source: Cointelegraph/TradingView
A Growing Risk Appetite Among Investors
Analysts remain optimistic about Bitcoin’s 2025 trajectory, with predictions ranging from $160,000 to $200,000 driven by growing risk appetite among investors thanks to expectations of improving US financial policy.
- How Much Higher Will Bitcoin Go? | Mark Yusko’s 2025 Predictions: Source: YouTube
What Lies Ahead for Ethereum and the DeFi Market?
As the cryptocurrency market navigates through the new year, several factors will contribute to its performance. From Ethereum’s potential to outperform Bitcoin in January to the IRS’s DeFi broker rules, there are many developments that will shape the future of the crypto landscape.
- Will ETH Outperform BTC in Jan? IRS DeFi Broker Rules, and More: Hodler’s Digest, Dec. 22–28: Source: Magazine
