Bitcoin (BTC) Breaks $100,000 as Positive Capital Flows and Declining Sell-Side Pressure Set the Stage for Potential Future Volatility

Following two months of consolidation, Bitcoin has broken upwards from its rangebound conditions and surged to a new all-time high of $109,000

Bitcoin price reached a new all-time high of $109,000 on Friday, continuing a remarkable rally that began two months ago.

The world’s largest cryptocurrency soared to a new peak of $109,000 on Friday morning, as fresh capital inflows and declining sell-side pressure pushed the coin to reach new highs.

Bitcoin price crossed the $100,000 threshold for the first time on December 24, following a rapid surge in price that began in early November.

Capital Flows into BTC Remained Positive, Slowed Down after Hitting $100,000

According to on-chain data, capital flows into Bitcoin remained positive, though the magnitude of capital inflows appeared to have slowed down after initially reaching the $100,000 mark.

This signaled a period of declining sell-side pressure as the market approached a near-term equilibrium.

The Realized Cap, a measure of the total value of all coins in circulation, was trading at an all-time high of $832 billion, with an increase of $38.6 billion per month.

Several on-chain metrics pointed towards a decline in sell-side pressure. The Net Realized Profit/Loss metric, which highlighted the magnitude of net capital flows on-chain, showed a drastic reduction in profit-taking volumes.

These volumes peaked at $4.5 billion in December 2024, and as of Friday, they stood at $316.7 million—a 93% decrease from December.

Meanwhile, the realized loss volumes also declined to all-time lows of $16.4 million.

On the other hand, the Net Realized Profit أيام metric reached a new ATH of 1.1 أيام, indicating the fast pace at which these capital flows occurred on-chain.

Supply Side of the Market Slowed Down

On the supply side of the market, several metrics also signaled a slowdown.

Coinday Destruction and exchange inflow volumes highlighted a reduction in investor distribution pressure. Notably, the Long-Term Holder Binary Spending Indicator showed a significant decline in the total LTH supply as the market approached $100,000 in December.

However, the rate of decrease in LTH supply has since slowed down drastically, suggesting a softening of distribution pressure in recent weeks.

Several on-chain volatility measures also tightened up, with the market trading within a historically narrow 60-day price range, which usually signaled that the market is set to make another move.

The Realized Supply Density metric quantified the supply concentration around the current spot price, indicating that small movements in price could drastically affect investor profitability and amplify market volatility.

Bitcoin price experienced strong intraday movements on Friday, surging to a new all-time high before largely stabilizing above the $100,000 level.

The positive capital inflows and declining sell-side pressure signaled that the market was approaching a near-term equilibrium, setting the stage for potential future volatility.