Bitcoin is poised for a potential recovery rally in January 2025, but low trading volumes could pose a significant challenge to surpassing the $105,000 level. After hitting an all-time high of $108,300 on Dec. 17, Bitcoin’s price has dropped by over 10% and has remained below $100,000 since Dec. 19, according to Markets Pro data.
Analysts See Range-Bound Trading in January
Analysts at Bitfinex predict Bitcoin will trade between $95,000 and $110,000 by the end of January. Despite subdued momentum, they remain optimistic about Bitcoin’s ability to recover from December’s price correction.
“We expect Bitcoin to see range-bound markets as investors allocate capital across various asset classes,” Bitfinex analysts stated.
The upcoming inauguration of President-elect Donald Trump on Jan. 20 could serve as a potential catalyst for cryptocurrency markets. Investors are hopeful that the new administration will introduce crypto-friendly regulations and economic policies. However, Bitfinex analysts caution that the inauguration may not trigger an immediate price surge.
“We see the new presidency as a prelude to more clarity in crypto policies rather than a direct price appreciation event,” they added.
Trading Volume Key to Recovery Rally
For Bitcoin to reclaim six-figure territory, analysts emphasize the need for increased trading volume. CryptoQuant analyst Axel Adler highlighted the lack of sufficient market activity as a barrier to a strong price rebound.
“Bitcoin needs higher trading volume for a strong impulse,” Adler wrote in a Jan. 4 post on X. “The market needs time to recover from the holiday season.”
On Jan. 3, Bitcoin recorded $66.7 million in daily trading volume, which is 91% lower than the $743 million seen on Dec. 5, when Bitcoin first broke the $100,000 milestone.
Long-Term Outlook Remains Bullish
Despite current challenges, analysts are optimistic about Bitcoin’s trajectory for 2025. Projections for the year range from $160,000 to $200,000, fueled by growing investor appetite for risk assets.
A key driver of this bullish outlook is the record-breaking adoption of U.S. spot Bitcoin exchange-traded funds (ETFs), which now manage nearly $110 billion in assets. Analysts believe these ETFs will play a pivotal role in pushing Bitcoin prices to new highs.
While Bitcoin’s immediate recovery hinges on increased trading volume, broader factors such as improving U.S. financial policies and the continued growth of institutional adoption through ETFs are likely to shape its long-term trajectory. Investors will be closely watching how market activity picks up in January and how policy developments unfold under the new administration.
