Bitcoin needs trading volume boost to rally above $105K in January

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Bitcoin analysts are forecasting an imminent recovery rally despite signs of holiday-driven market illiquidity that contributed to December’s price correction.

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Bitcoin (BTC) is currently down over 10% from its $108,300 all-time high recorded on Dec. 17. The world’s first cryptocurrency has been trading under $100,000 since Dec. 19, Cointelegraph Markets Pro data shows.

BTC/USD, 1-month chart. Source: Cointelegraph

Despite the subdued momentum, Bitcoin could climb as high as $105,000 in January, according to analysts at Bitfinex.

“We expect Bitcoin to see range-bound markets as investors look to deploy capital across a range of different asset classes. We see Bitcoin ranging between $95,000 and $110,000 by the end of January,” Bitfinex analysts told Cointelegraph.

United States President-elect Donald Trump’s inauguration on Jan. 20 could be a significant catalyst for cryptocurrency prices. Expectations for the incoming administration include more crypto-friendly regulations and improved economic policies in the US.

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However, Trump’s inauguration may not lead to an immediate crypto rally, according to Bitfinex analysts:

“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.”

The predictions follow analyst calls for a $200,000 Bitcoin price top during 2025 bolstered by the record-breaking growth of the US spot Bitcoin exchange-traded funds (ETFs), which are nearing $110 billion in assets under management.

Related: Top crypto investments in 2025: Bitcoin, AI projects, tokenized assets

Recovery requires increased trading volume

Despite the optimistic price trajectory, Bitcoin remains bound by the holiday illiquidity.

To stage a recovery rally above the six-figure mark, Bitcoin still needs to accumulate more trading volume, wrote CryptoQuant analyst Axel Adler.

“For a strong impulse, we lack sufficient trading volume. Therefore, we are waiting for the market to recover from the holiday season,” Adler wrote in a Jan. 4 post on X.

Analysis, Bitcoin Price, Bitcoin Analysis, Donald Trump, Price Analysis, Bitcoin ETF — *Source:* *Axel Adler*

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Related: Bitcoin targets $120K in January amid record Binance stablecoin reserves

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.

Still, 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.