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As of Tuesday, January 7, 2025, at 9:10 AM, Bitcoin is trading at $100,747.41, showing a 1.38% gain from the previous close of $102,284.52. The market capitalization stands at $1.996 trillion, with a 24-hour volume of $49.17 billion.
Bitcoin’s price surge above $102,000 on Monday was influenced by the announcement of Michael S. Barr’s resignation as the Federal Reserve Vice Chair for Supervision. Barr, known for his strict regulatory stance on cryptocurrencies, is set to depart by February 28 or earlier, once a successor is confirmed. His departure is seen as a positive signal for the cryptocurrency sector, potentially easing fears of tough regulatory measures in the final phase of President Biden’s term.The positive sentiment surrounding Barr’s resignation bolstered the overall crypto market, with Bitcoin seeing a sharp rally.
A report from Bitfinex highlights a decline in Bitcoin’s sell-side liquidity, with the Liquidity Inventory Ratio dropping significantly from 41 months in October to just 6.6 months in January. This suggests that the available supply of Bitcoin may struggle to meet growing demand in the coming months. Despite the current strength, the report notes a potential deeper pullback in Q1 2025, signaling caution in the market.
Disclaimer: The information provided is for informational purposes only and does not constitute financial advice.