Despite signs of holiday-driven market illiquidity that contributed to December’s price correction, Bitcoin analysts are forecasting a near-term recovery rally.

BTC is currently down over 10% from its all-time high of $108,300 recorded on December 17. The world’s first cryptocurrency has been trading below $100,000 since December 19.

BTC/USD, 1 Month Chart

According to Bitfinex analysts, Bitcoin is expected to climb as high as $105,000 in January, though momentum is currently stagnating.

Bitfinex analysts stated, “As investors look to allocate capital across various asset classes, we expect Bitcoin to trade within a narrow range. By the end of January, we expect Bitcoin to move between $95,000 and $110,000.”

The inauguration of U.S. President-elect Donald Trump on January 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 U.S.

However, Bitfinex analysts believe Trump’s inauguration may not immediately trigger a crypto rally.

“We expect the new presidency to bring more clarity to crypto policies, but we do not view the inauguration as a major price event; rather, we see it as a precursor to a less obstructed path for crypto in the U.S.”

These predictions follow analysts’ expectations for Bitcoin to rise to $200,000 by 2025. This outlook is supported by the record growth of U.S. spot Bitcoin exchange-traded funds (ETFs), with assets under management in these ETFs approaching $110 billion.

Increased Trading Volume Needed for Recovery

Despite the optimistic price trend, BTC remains limited by liquidity shortages due to the holiday season.

CryptoQuant analyst Axel Adler, who wrote that Bitcoin still needs to accumulate more trading volume for a recovery rally above the six-figure mark, stated:

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

BTC saw a daily trading volume of $66.7 million on January 3, which is 91% lower than the $743 million recorded on December 5 when it first surpassed the $100,000 mark.

Still, analysts remain optimistic about BTC’s trajectory in 2025, with predictions ranging from $160,000 to $200,000. These expectations are based on the growing risk appetite among investors, fueled by anticipated improvements in U.S. financial policy.

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