Bitcoin platform amazing recovery last week, climbing back above $100,000 after briefly falling to a low of $89,698. The highest value of the BOAT sector was 105,800. This peak-to-trough jump of 18.2 percent reflects Bitcoin's relative strength compared to equities, with BTC ending the week up 10 percent.
BTC/USD 4H chart showing last week's high
The dip below $90,000 prompted massive liquidations, with $818 million recorded on January 13, including $592 million in long positions. Short-term holders (STHs), who have an average cost basis of $88,400, played a essential role in protecting the price during this correction. Historically, the STH cost base acts as a reliable support level, and last week's trough is closely related to this level, causing a reversal. However, a drop below the STH cost base could create pressure, which could encourage further selling.
The recovery was largely fueled by aggressive spot buying, as seen in the sharp increase in population Spot Delta Cumulative Volume. This metric indicated significant pressure on tenant purchases, particularly from US-based exchanges. The buying patterns mirrored previous activity related to MicroStrategy and ETF purchases, reinforcing the view that institutional demand remains strong.
However, the spot buying pressure seen last week may require time for applications to replenish, which could be caused pull back briefly before resuming a higher move. Bitcoin's stability and steady demand positions it well for continued strength in the medium term.
The inflation showed a slightly up in December, with the CPI rising 2.9 percent annually, driven largely by rising energy prices. While core inflation remains above the Federal Reserve's two percent target, stabilizing import prices and lower than expected Producer Price Index growth. offers some hope to reduce inflationary pressures. Consumer spending still strongwith retail sales climbing 3.9 percent year over year in December, bolstered by wage growth and a strong labor market. However, uncertainty is growing as to the targets that Trump proposes could increase costs for essential goods, disproportionately affecting lower income households and potentially undermining recent progress in controlling inflation. Meanwhile, the Federal Reserve appears watchfulindicating fewer rate cuts in 2025 to balance inflation concerns with economic growth. Despite these headwinds, the stability of consumer activity and employment strength provide a solid foundation, despite the risks from tariff policies, labor supply constraints, and seasonal spending fluctuations that could pose significant challenges be there
In crypto news last week, Trump launched a $ coin memeTRUMP on the Solana blockchain, eliciting both enthusiasm and skepticism as it quickly reached a valuation of $15 billion before seeing significant profits. Although it is marketed as a symbol of support for Trump's views rather than an investment, there are concerns about mediation and transparency continuewith potential implications for management research and political finance. In the meantime, institutions continue to look for ways to provide crypto-related assets to traditional financial investors, with filings for a instead of Litecoin ETF and praise Onchain ETF with a focus on digital asset infrastructure. These filings reflect a broader push for mainstream adoption following the success of Bitcoin and Ethereum spot ETFs. The OnChain Economy ETF seeks to provide exposure to businesses shaping the blockchain economy, offering investors a diversified entry point amid growing interest in the sector.
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