Will the Bitcoin price crash again?

The Bitcoin price fell sharply again on January 8, indicating that the bears are slowly taking control of the market. This week, BTC received a setback after surprisingly strong data from the US labor market was released. However, well-known analyst Miles Deutscher also sees positive developments for Bitcoin beneath the surface.

Liquidity in the crypto ecosystem is increasing

Miles Deutscher points out that the amount of stablecoins in circulation has increased and is in a phase of “price discovery”.

This could mean that there is more liquidity available in the crypto ecosystem. An increase in the supply of stablecoins suggests that we could potentially see a larger inflow of capital in the coming months.

Jamie Coutts, chief analyst at Real Vision Crypto, is also positive about the markets. He is optimistic about BTC’s strength.

In his opinion, the strong USD could also have caused Bitcoin to reach 80,000 USD. The fact that we are currently trading above 90,000 USD is already a remarkable achievement in this regard.

US investors become active

This cycle really seems to be the United States BTC cycle.

Roman Zinovyev observes that dollar volumes during the US trading session on Binance’s spot markets have increased sharply since September. This year, the market share of US markets has risen to an all-time high of 42%.

As many of us know, returns on most American stocks tend to be significantly higher during the winter months than in the summer. This phenomenon, commonly referred to as the Halloween Effect, often intersects with other well-known seasonal anomalies, such as the January Effect.… pic.twitter.com/e1Y7mnXvDa

— Roman Zinovyev (@RZinovyev) January 6, 2025

This in itself is no surprise, as BTC is doing extremely well in the United States. Donald Trump may be considering a national Bitcoin reserve, and more and more companies are switching to the BTC standard.

In terms of adoption, BTC has nothing to complain about in the United States. In terms of price, things could be better, but corrections are normal in a bull market.

Author
Recent Posts

Margharet Tess

Editor, Developer at Cryptheory Labs

I have been active in the cryptocurrency world for over 6 years, during which I have written countless articles about this sector. What fascinates me most about cryptocurrencies is their technological aspect and the problems they aim to solve. In the past three years, I have ventured into app development and am currently working on a larger project called P2E Buzzer. Stay tuned for the surprise. 🙂 My previous experiences: Business2Community.com, TradingPlatforms.com

Latest posts by Margharet Tess (see all)