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Crypto Market Boredom: Bitcoin & Altcoins See Volume Crash

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Crypto Market Boredom: Bitcoin & Altcoins See Volume Crash

On-chain data shows the cryptocurrency traders have hit the snooze button as Bitcoin and other assets have witnessed a plunge in volume.

Bitcoin & Altcoins Have Seen A Trading Volume Crash Recently

According to data from the on-chain analytics firm Santiment, trading volume has seen a slowdown in the cryptocurrency sector during the past week.

The “trading volume” here refers to an indicator that keeps track of the total amount of a given asset that’s becoming involved in trading activities on the major exchanges. When the value of this metric goes up, it means the investors are participating in a higher amount of activity related to the coin. Such a trend implies interest in the asset is on the rise.

On the other hand, the indicator observing a decline suggests the traders may be starting to put their attention elsewhere as they are taking part in a lower amount of activity.

Now, here is a chart that shows the trend in the combined Bitcoin trading volume for four different segments of the digital asset sector:

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The value of the metric appears to have gone through a decline for all of these groups | Source: Santiment on X

In the above graph, the four sides or segments of the cryptocurrency market displayed are: Memecoins Top 6, AI & Big Data Top 6, Layer 1 Top 6, and Layer 2 Top 6.

“Layer 1” assets refer to those that circulate on blockchains that handle their own security and aren’t built on top of another ecosystem. Bitcoin and Ethereum are the most prominent examples of coins of this type. The coins that aren’t on primary networks, like Polygon (MATIC) and Arbitrum (ARB), are termed Layer 2.

From the chart, it’s apparent that the six largest coins for both of these categories have seen a sharp decline in their trading volume recently. Segments like meme-based tokens and AI-related coins have also noted cooldowns of their own at the same time.

Back in November and the first half of December, the volume was high across the market as traders made a large number of moves during the Bitcoin bull run hype. It would appear, though, that the recent bearish shift has damaged the investor morale.

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After the latest continuation of the decline in the indicator, trading activity in the market has slumped to the lowest level since the 4th of November, a day before the presidential elections in the US.

Generally, the market tends to see volatility when a large number of traders are participating in trading activity, as it’s their trades that fuel price moves. Since the trading volume has slumped across the cryptocurrency sector recently, it’s possible that Bitcoin and others might see a state of calm in the near future.

The low activity may even be considered a sign that there is FUD in the market, which is something that has facilitated bottoms in the past.

BTC Price

At the time of writing, Bitcoin is trading at around $90,700, down almost 8% in the last week.

Bitcoin Price Chart

Looks like the price of the coin has been going down over the past day | Source: BTCUSDT on TradingView

Featured image from Dall-E, Santiment.net, chart from TradingView.com

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Why Is Bitcoin Price Going Up? BTC Prediction After Bullish Buy Signal

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Why Is Bitcoin Price Going Up? BTC Prediction After Bullish Buy Signal

Bitcoin’s
price (BTC) is making significant gains on Tuesday, January 14, 2025, adding
over $2,000 to its value. However, Monday saw the market shaken, with the price
briefly dropping to a two-month low below the critical $90,000 psychological
level.

In this
article, I review what triggered the sudden drop, why the Bitcoin price is
going up today, and how to interpret the bullish pin bar above the 50-day
exponential moving average—a potentially strong buy signal.

On Tuesday,
Bitcoin is trading above $97,000 on Binance, marking its highest value in a
week. The cryptocurrency is currently up 2.7%, with altcoins following suit.
Ethereum (ETH) has gained 4.9% over the past 24 hours, reaching
$3,200, while XRP, the third-largest cryptocurrency by market cap, has
risen 7% to $2.56.

As shown in
the chart below, Bitcoin’s price remains in a consolidation phase that has been
in place since November, with the lower boundary near $92,000 and the upper
limit at its previous high of $98,000.

Bitcoin price is currently inside a consolidation. Source: Tradingview.com

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However,
Monday painted a less optimistic picture as
Bitcoin briefly dipped to just $89,398, causing significant panic and
confusion among retail investors.

The
temporary panic was also evident in the derivatives market: within four days,
investors pulled $1.6 billion from cryptocurrency exchange-traded funds (ETFs),
marking one of the longest selling streaks in recent times.

Over the
past 24 hours, both bulls and bears have incurred losses. Approximately $500
million in leveraged positions were liquidated across the market, with nearly
equal distribution between long and short positions. Bitcoin accounted for over
20% of this activity, with $44 million liquidated from long positions and $72
million from shorts.

Source: Coinglass.com

Analysts
attribute the recent decline in Bitcoin and the broader cryptocurrency market
to two primary factors: so-called “Trump Trade” and monetary policy.

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Why Bitcoin Fell? Fed
Policy and Market Uncertainty Shake BTC Price

The
cryptocurrency market’s downturn is primarily driven by shifting expectations
about Federal Reserve (Fed) interest rate policies. Strong economic indicators
have led investors to anticipate a longer period of higher interest rates. The
robust U.S. job market, with 256,000 new nonfarm payrolls and a 4.1%
unemployment rate, has particularly influenced this outlook.

According
to the CME’s FedWatch tool, the probability of a rate cut at the next meeting,
scheduled for January 29, is just 2.7%. The market is currently pricing in a
stronger likelihood (around 40%) of a cut to the 4.00–4.25% range in the second
half of the year. Earlier expectations were for a more aggressive path of rate
cuts, which was expected to fuel risk assets such as cryptocurrencies and
stocks.

The chances that the Fed will lower rates this month are almost zero. Source: CME

Moreover, the
initial euphoria surrounding Trump’s pro-crypto stance has given way to more
cautious market sentiment. While Trump’s upcoming presidency promised to make
the U.S. the “crypto capital of the world,” investors are now
focusing on immediate economic realities rather than future policy promises.

The
cryptocurrency decline isn’t occurring in isolation. The selloff in Treasury
markets has created a ripple effect across various asset classes, affecting
both crypto and traditional markets. This broader market reaction demonstrates
Bitcoin’s increasing correlation with conventional risk assets.

Advertisement

Will Bitcoin Keep Going
Up? BTC Price Prediction and Technical Analysis

The
candlestick I want to highlight in the technical analysis of Bitcoin ‘s price
chart may seem modest and even barely noticeable. However, in my view, it
carries significant strength and buying potential. This is a bullish pin bar
(or doji candle) with an almost invisible body and a very long lower wick,
indicating that bears were in control but had to concede to bulls by the
session’s close.

What
does the chart show?

  • The bullish
    pin bar tested the 50 EMA and two critical support levels: $92,000 and $90,000.
  • All three
    levels held, and the price responded with an immediate increase the following
    day.
  • This strong
    bullish signal confirmed the lower boundary of the consolidation range,
    signaling that buyers are likely to actively defend the green-marked support
    zone.

Bitcoin technical analysis: BTC price chart drew a bullish pin bar candle. Source: Tradingview.com

While
Bitcoin remains in consolidation, this reaction suggests, from a purely
technical standpoint, the potential for a move towards $103,000 (the 2025
highs) and ultimately $108,000, the all-time high (ATH) to date.

Bitcoin Price Key Support
and Resistance Levels

Support

Resistance

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$90,000 – psychological round
level

$100,000 – psychological round
level

$92,000 – local lows tested in
November, December and January

$103,000 – highs from 2025

50 EMA – currently at $94,482

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$108,000 – current ATH

Breaking
above the current all-time high is a necessary condition for considering
ambitious forecasts for 2025 and beyond. Some of these projections are
truly bold.

Bitcoin Price Prediction:
Will BTC Reach $1 Million?

Late last
year, I explored the question, “Will
Bitcoin hit $1 million?” According to Jeff Park, Head of Alpha
Strategies at Bitwise Asset Management, this could be possible if the U.S.
government were to adopt a Bitcoin reserve strategy. However, he currently
assigns only a 10% probability to this scenario.

Arthur
Hayes, the Founder of the cryptocurrency exchange BitMEX, has frequently
mentioned such ambitious levels as $1 million. Last week, he appeared as a guest on
Tom Bilyeu’s show, where he discussed the current state of the
cryptocurrency market during a nearly two-hour interview. Hayes suggested that
Bitcoin is gradually heading toward seven-figure valuations and could
potentially reach them within the next five years.

“Bitcoin
has already survived for 15 years. This makes investors start to believe that
it can last for decades to come.” – Hayes commented. “BTC will be here for
the next 15, 20, 100 years. I think it will be a store of value. I can use it
to pay for things I need, so I’m going to take 2%, 3%, 4%, 5%, 10% of my
retirement income or savings and start buying that asset now.”

Other
experts, including VanEck analysts, predict more down to earth numbers. Month
ago, they
forecasted that Bitcoin price could reach $180,000 in 2025.

Bitcoin Price, FAQ

Why Is the Price of
Bitcoin Going Up?

Bitcoin’s
price is rising due to a strong bullish pin bar forming above critical support
levels, signaling strong buying activity. Market sentiment improved as Bitcoin
rebounded from a two-month low of $89,398 to trade above $97,000. This movement
reflects consolidation within the $92,000–$98,000 range, supported by technical
indicators and broader market optimism.

Will Bitcoin Rise Again?

Bitcoin’s
price is expected to rise further based on technical analysis. If it breaks
through key resistance at $103,000, it could test the all-time high of
$108,000. Long-term projections remain optimistic, with some experts predicting
significant gains by 2025, assuming market conditions remain favorable.

Advertisement

Why Is Bitcoin So Valuable
Today?

Bitcoin’s
value stems from its status as a decentralized digital asset with limited
supply, serving as a hedge against inflation and a potential store of value.
Its increasing adoption, network security, and potential as a global reserve
asset contribute to its high valuation.

Why Did Bitcoin Fall
Recently?

Bitcoin’s
recent decline was driven by market reactions to expectations of prolonged
higher interest rates from the Federal Reserve. Strong U.S. economic data
reduced the likelihood of rate cuts, pressuring risk assets like
cryptocurrencies. Additionally, shifting sentiment around pro-crypto policies
under the upcoming U.S. administration added to market uncertainty.

How Much Will Bitcoin Cost
in 2025?

Bitcoin’s
2025 price predictions vary widely. Analysts forecast potential highs ranging
from $180,000 (VanEck) to over $1 million (Arthur Hayes), depending on adoption
trends, macroeconomic conditions, and regulatory developments. A more
conservative estimate places Bitcoin at $180,000, reflecting steady growth
without speculative excess.

Bitcoin’s
price (BTC) is making significant gains on Tuesday, January 14, 2025, adding
over $2,000 to its value. However, Monday saw the market shaken, with the price
briefly dropping to a two-month low below the critical $90,000 psychological
level.

In this
article, I review what triggered the sudden drop, why the Bitcoin price is
going up today, and how to interpret the bullish pin bar above the 50-day
exponential moving average—a potentially strong buy signal.

Advertisement

On Tuesday,
Bitcoin is trading above $97,000 on Binance, marking its highest value in a
week. The cryptocurrency is currently up 2.7%, with altcoins following suit.
Ethereum (ETH) has gained 4.9% over the past 24 hours, reaching
$3,200, while XRP, the third-largest cryptocurrency by market cap, has
risen 7% to $2.56.

As shown in
the chart below, Bitcoin’s price remains in a consolidation phase that has been
in place since November, with the lower boundary near $92,000 and the upper
limit at its previous high of $98,000.

Bitcoin price is currently inside a consolidation. Source: Tradingview.com

However,
Monday painted a less optimistic picture as
Bitcoin briefly dipped to just $89,398, causing significant panic and
confusion among retail investors.

The
temporary panic was also evident in the derivatives market: within four days,
investors pulled $1.6 billion from cryptocurrency exchange-traded funds (ETFs),
marking one of the longest selling streaks in recent times.

Advertisement

Over the
past 24 hours, both bulls and bears have incurred losses. Approximately $500
million in leveraged positions were liquidated across the market, with nearly
equal distribution between long and short positions. Bitcoin accounted for over
20% of this activity, with $44 million liquidated from long positions and $72
million from shorts.

Source: Coinglass.com

Analysts
attribute the recent decline in Bitcoin and the broader cryptocurrency market
to two primary factors: so-called “Trump Trade” and monetary policy.

Why Bitcoin Fell? Fed
Policy and Market Uncertainty Shake BTC Price

The
cryptocurrency market’s downturn is primarily driven by shifting expectations
about Federal Reserve (Fed) interest rate policies. Strong economic indicators
have led investors to anticipate a longer period of higher interest rates. The
robust U.S. job market, with 256,000 new nonfarm payrolls and a 4.1%
unemployment rate, has particularly influenced this outlook.

According
to the CME’s FedWatch tool, the probability of a rate cut at the next meeting,
scheduled for January 29, is just 2.7%. The market is currently pricing in a
stronger likelihood (around 40%) of a cut to the 4.00–4.25% range in the second
half of the year. Earlier expectations were for a more aggressive path of rate
cuts, which was expected to fuel risk assets such as cryptocurrencies and
stocks.

Advertisement

The chances that the Fed will lower rates this month are almost zero. Source: CME

Moreover, the
initial euphoria surrounding Trump’s pro-crypto stance has given way to more
cautious market sentiment. While Trump’s upcoming presidency promised to make
the U.S. the “crypto capital of the world,” investors are now
focusing on immediate economic realities rather than future policy promises.

The
cryptocurrency decline isn’t occurring in isolation. The selloff in Treasury
markets has created a ripple effect across various asset classes, affecting
both crypto and traditional markets. This broader market reaction demonstrates
Bitcoin’s increasing correlation with conventional risk assets.

Will Bitcoin Keep Going
Up? BTC Price Prediction and Technical Analysis

The
candlestick I want to highlight in the technical analysis of Bitcoin ‘s price
chart may seem modest and even barely noticeable. However, in my view, it
carries significant strength and buying potential. This is a bullish pin bar
(or doji candle) with an almost invisible body and a very long lower wick,
indicating that bears were in control but had to concede to bulls by the
session’s close.

What
does the chart show?

Advertisement
  • The bullish
    pin bar tested the 50 EMA and two critical support levels: $92,000 and $90,000.
  • All three
    levels held, and the price responded with an immediate increase the following
    day.
  • This strong
    bullish signal confirmed the lower boundary of the consolidation range,
    signaling that buyers are likely to actively defend the green-marked support
    zone.

Bitcoin technical analysis: BTC price chart drew a bullish pin bar candle. Source: Tradingview.com

While
Bitcoin remains in consolidation, this reaction suggests, from a purely
technical standpoint, the potential for a move towards $103,000 (the 2025
highs) and ultimately $108,000, the all-time high (ATH) to date.

Bitcoin Price Key Support
and Resistance Levels

Support

Resistance

$90,000 – psychological round
level

$100,000 – psychological round
level

Advertisement

$92,000 – local lows tested in
November, December and January

$103,000 – highs from 2025

50 EMA – currently at $94,482

$108,000 – current ATH

Breaking
above the current all-time high is a necessary condition for considering
ambitious forecasts for 2025 and beyond. Some of these projections are
truly bold.

Advertisement

Bitcoin Price Prediction:
Will BTC Reach $1 Million?

Late last
year, I explored the question, “Will
Bitcoin hit $1 million?” According to Jeff Park, Head of Alpha
Strategies at Bitwise Asset Management, this could be possible if the U.S.
government were to adopt a Bitcoin reserve strategy. However, he currently
assigns only a 10% probability to this scenario.

Arthur
Hayes, the Founder of the cryptocurrency exchange BitMEX, has frequently
mentioned such ambitious levels as $1 million. Last week, he appeared as a guest on
Tom Bilyeu’s show, where he discussed the current state of the
cryptocurrency market during a nearly two-hour interview. Hayes suggested that
Bitcoin is gradually heading toward seven-figure valuations and could
potentially reach them within the next five years.

“Bitcoin
has already survived for 15 years. This makes investors start to believe that
it can last for decades to come.” – Hayes commented. “BTC will be here for
the next 15, 20, 100 years. I think it will be a store of value. I can use it
to pay for things I need, so I’m going to take 2%, 3%, 4%, 5%, 10% of my
retirement income or savings and start buying that asset now.”

Other
experts, including VanEck analysts, predict more down to earth numbers. Month
ago, they
forecasted that Bitcoin price could reach $180,000 in 2025.

Advertisement

Bitcoin Price, FAQ

Why Is the Price of
Bitcoin Going Up?

Bitcoin’s
price is rising due to a strong bullish pin bar forming above critical support
levels, signaling strong buying activity. Market sentiment improved as Bitcoin
rebounded from a two-month low of $89,398 to trade above $97,000. This movement
reflects consolidation within the $92,000–$98,000 range, supported by technical
indicators and broader market optimism.

Will Bitcoin Rise Again?

Bitcoin’s
price is expected to rise further based on technical analysis. If it breaks
through key resistance at $103,000, it could test the all-time high of
$108,000. Long-term projections remain optimistic, with some experts predicting
significant gains by 2025, assuming market conditions remain favorable.

Why Is Bitcoin So Valuable
Today?

Bitcoin’s
value stems from its status as a decentralized digital asset with limited
supply, serving as a hedge against inflation and a potential store of value.
Its increasing adoption, network security, and potential as a global reserve
asset contribute to its high valuation.

Why Did Bitcoin Fall
Recently?

Bitcoin’s
recent decline was driven by market reactions to expectations of prolonged
higher interest rates from the Federal Reserve. Strong U.S. economic data
reduced the likelihood of rate cuts, pressuring risk assets like
cryptocurrencies. Additionally, shifting sentiment around pro-crypto policies
under the upcoming U.S. administration added to market uncertainty.

Advertisement

How Much Will Bitcoin Cost
in 2025?

Bitcoin’s
2025 price predictions vary widely. Analysts forecast potential highs ranging
from $180,000 (VanEck) to over $1 million (Arthur Hayes), depending on adoption
trends, macroeconomic conditions, and regulatory developments. A more
conservative estimate places Bitcoin at $180,000, reflecting steady growth
without speculative excess.

Continue Reading

Crypto

Congressman Who Wanted Airport Named After Trump Buys Bitcoin, Solana, XRP Token Ahead Of Inauguration

Published

on

Congressman Who Wanted Airport Named After Trump Buys Bitcoin, Solana, XRP Token Ahead Of Inauguration

A member of Congress disclosed buying three cryptocurrencies in December, as the sector gets ready to welcome in a pro-cryptocurrency White House administration.

What Happened: With many cryptocurrencies hitting new all-time highs after Donald Trump’s 2024 election win, members of Congress like Representative Guy Reschenthaler (R-Pa.) are adding crypto to their portfolio.

According to Benzinga’s Government Trades page for Reschenthaler, the Republican Representative disclosed the trades recently in one filing.

Here are the cryptocurrencies purchased and the dates the trades were made:

  • Dec. 11: $1,000 to $15,000 Solana SOL/USD
  • Dec. 11: $1,000 to $15,000 XRP Token XRP/USD
  • Dec. 23: $1,000 to $15,000 Bitcoin BTC/USD

The transactions are the first disclosed by Reschenthaler since he joined Congress in 2019.

Did You Know?

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Why It’s Important: Reschenthaler, 41, has not been as vocal about cryptocurrency as other members of Congress have been. The purchase could be due in part due to his belief that a Trump presidency will be bullish for the cryptocurrency sector.

Here is a look at how much the Congressman paid for the cryptocurrencies versus where the price is today:

  • Solana: 12/11 range $211.99 to $230.51, today $175.83
  • XRP: 12/11 range $2.24 to $2.47, today $2.45
  • Bitcoin: 12/23 range $92,403.13 to $96,416.21, today $91,836.61

Two of the Congressman’s purchases have lost money while the purchase of XRP has turned into a winning trade. Benzinga will closely monitor the trading activity of members of Congress when it comes to cryptocurrency in the coming months.

Last year, Reschenthaler proposed renaming the Washington Dulles International Airport, which is located 25 miles from Washington, D.C., to the Donald J. Trump International Airport.

“In my lifetime, our nation has never been greater than under the leadership of President Donald J. Trump,” Reschenthaler said at the time. “As millions of domestic and international travelers fly through the airport, there is no better symbol of freedom, prosperity, and strength than hearing ‘Welcome to Trump International Airport’ as they land on American soil.”

Read Next:

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Image: Shutterstock

Market News and Data brought to you by Benzinga APIs

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VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook

Published

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VT Markets Anticipates Cryptocurrency Growth from Policy Changes and Market Momentum in 2025 Q1 Economic Outlook

HONG KONG SAR – Media OutReach Newswire – 13 January 2025 – VT Markets, an award-winning financial services provider, today releases its 2025 Q1 Economic Outlook. The report highlights how the dual tailwind of favourable policies and market dynamics will propel the cryptocurrency sector into a new era of mainstream adoption. The report also underscores the transformative strides achieved by cryptocurrencies in 2024, which sets the stage for further growth in the upcoming year.

2024 As A Landmark Year for Cryptocurrency

With the conclusion of the 2024 U.S. Presidential election, cryptocurrencies have ascended from niche assets to mainstream investment products. Political developments, particularly arising President Trump’s re-election and his pro-cryptocurrency stance, acted as the main catalyst for this phenomenon. Participants observed Bitcoin’s price surging by over 40%, crossing $108,000 by year-end anticipating dovish policy shifts and renewed investor confidence towards the digital asset.

Key regulatory appointments, such as naming crypto advocate Hester Peirce as SEC Chair, signalled to the market a shift towards a more favourable regulatory framework, instilling optimism in institutional and retail investors alike.

The Rise of Spot Bitcoin ETFs

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In early 2024, the U.S. SEC approved multiple spot Bitcoin ETFs; a significant breakthrough for the cryptocurrency industry then. By year-end, assets under management for these ETFs grew from $28.8 billion to $110 billion. Among them, BlackRock’s IBIT ETF stood out, achieving record-breaking $30 billion AUM in under 300 days.

This development not only validated cryptocurrencies as a mainstream investment class but also paved the way for wider institutional participation. The integration of cryptocurrency into traditional finance is seen as a key step toward standardisation – an issue which has plagued the industry since its inception.

Liquidity and Risk Appetite Fuel Growth

Macroeconomic conditions, including the Federal Reserve’s shift towards an easing monetary policy, contributed to increased market liquidity and higher risk asset valuations. Cryptocurrencies, known for their high-risk, high-reward profile, inevitably emerged as a preferred choice for portfolio diversification, further driving their adoption and price momentum.

2025 Will Be A Year of Regulatory Clarity and Technological Innovation

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Looking ahead, the cryptocurrency sector is poised for greater regulatory clarity and broader market acceptance globally:

United States: Expected legislation on stablecoins and other crypto assets will a establish a clear regulatory environment.

European Union: The upcoming implementation of the Markets in Crypto-Assets Regulation (MiCA) will enhance transparency and compliance.

Asia-Pacific: Singapore and Hong Kong are set to strengthen their positions as regional crypto hubs, promoting Web3 development and reopening licensing opportunities for exchanges.

Emerging Markets: Countries like Brazil, the UAE, Australia, and South Africa are advancing efforts to legitimize cryptocurrencies, potentially becoming regional leaders in the sector.

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A New Era for Mainstream Cryptocurrency Adoption

The VT Markets’ Research Desk suggests that the confluence of supportive policies, transparent regulations, and robust market conditions will accelerate the mainstream adoption of cryptocurrencies.

They believe that this transition from speculative assets to recognised investment products will be a pivotal moment in financial innovation.

https://www.linkedin.com/company/89310903/admin/feed/posts/

https://www.facebook.com/VTMarketsCN

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https://www.instagram.com/vtmarkets/

Hashtag: #VTMarkets #CFDs #CFDsbrokers #cryptocurrency #Bitcoin #bitcointrading

The issuer is solely responsible for the content of this announcement.

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