Bitcoin Resumes Upward Trend, Nears $93,500
After a recent dip, cryptocurrencies are back on an upward trajectory, with Bitcoin gaining 1.5% to $93,514.87 on Friday, January 10. Altcoins are also mostly in the green, led by Cardano, which is up 3.2%.
Bitcoin’s sentiment has faced challenges this month due to volatility, as bullish efforts failed to reclaim and sustain the critical $100,000 level.
Indicators of Market Sentiment
A key signal of investor sentiment, the Spent Output Profit Ratio (SOPR), has declined, reflecting increasing capitulation among speculative investors. The SOPR measures the profitability of Unspent Transaction Outputs (UTXO) by comparing the last price a coin was moved to its current value.
For short-term holders (STH)—investors who hold BTC for up to 155 days—the SOPR has dropped below the breakeven point of 1, currently standing at 0.987. This indicates that many short-term holders are selling at a loss, a bearish signal for the market.
As Bitcoin’s price fell, negative sentiment became more prominent, especially on platforms like YouTube and news outlets. Analysts suggest that this underscores a growing bearish outlook among short-term traders.
Despite the challenges, BTC/USD current price movement suggests the market is attempting to regain bullish momentum, with eyes set on the $95,000 level as the next key resistance.
Limited Rate Cuts in 2025
Adding to the cautious market sentiment, several major banks have revised their forecasts, signaling that further interest rate cuts in 2025 are unlikely. This shift in expectations follows stronger-than-anticipated economic data and inflationary pressures in key global economies.
These projections could weigh on cryptocurrency markets, as lower rate cuts limit liquidity, a key driver of Bitcoin’s past rallies. Analysts believe that while Bitcoin’s recent uptrend is encouraging, macroeconomic uncertainty and reduced monetary easing may temper bullish momentum throughout the year.
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