Bitcoin’s brief drop below $90,000 has dominated crypto discussions, alongside speculation surrounding Trump’s upcoming inauguration.
The widespread “$90K” chatter across social media acted as a fear indicator, often a precursor to market recoveries. Such sentiment-driven movements emphasize Bitcoin’s continued volatility and its influence on market psychology.
🗣️ The top trending topics in crypto are heavily revolving around Bitcoin's temporary drop to under $90K and Trump's inauguration next week. Regarding the former, the fact that '$90K' was being spammed across social media was a great fear signal that would foreshadow a bounce. pic.twitter.com/gL2GY1Lm6S
— Santiment (@santimentfeed) January 14, 2025
Contents
Long-Term Holders Reduce Bitcoin Holdings
Over the past year, the supply of Bitcoin held by long-term investors has been gradually declining. Historical data, marked by red arrows on past cycle charts, indicates similar patterns preceding shifts in market behavior. While not exact predictors of price peaks, these trends suggest that long-term holder activity is a critical factor in Bitcoin’s cyclical nature. Market conditions now resemble past phases where selling slows and buying resumes, often coinciding with price consolidations.
Over the past 12 months, the amount of Bitcoin held by long-term holders has been declining.
The red arrows on the chart below highlight similar periods in past cycles.
While these indicators don't precisely forecast price peaks, it's important to understand that long-term… pic.twitter.com/fllfjl4B6V
— IntoTheBlock (@intotheblock) January 13, 2025
Short-Term Trader Activity at Lows
The share of Bitcoin held by short-term traders has hit its lowest level since mid-November. This decline signals reduced speculative activity and fewer new entrants into the market. It suggests a consolidation phase, as investors and traders wait for clearer market direction. This lull in short-term interest could set the stage for a more stable market foundation.
The amount of Bitcoin held by short-term traders has reached its lowest level since mid-November.
This suggests a decrease in interest from speculative traders, alongside fewer new market entrants, indicating a consolidation phase as investors await clearer directional cues pic.twitter.com/zvD1Gtckuf
— IntoTheBlock (@intotheblock) January 14, 2025
Bitcoin ETF Flows: A Mixed Picture
On January 13, Bitcoin spot ETFs experienced a net outflow of $284 million. However, BlackRock’s ETF, IBIT, recorded a notable net inflow of $29.46 million, highlighting mixed investor sentiment. ETF flows often serve as a barometer for institutional interest, with fluctuations reflecting broader market trends.
On January 13, the total net outflow of Bitcoin spot ETFs was $284 million. The Bitcoin spot ETF with the largest net inflow yesterday was BlackRock ETF IBIT, with a net inflow of $29.4646 million. https://t.co/59u0BnEqLG pic.twitter.com/semf38ojcs
— Wu Blockchain (@WuBlockchain) January 14, 2025
Conclusion
As Bitcoin hovers near the $90K mark, declining long-term holdings and reduced speculative interest point to a consolidation phase. Meanwhile, ETF inflows and historical patterns hint at potential buying opportunities, setting the stage for the next phase of Bitcoin’s journey.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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