Bitcoin 
$101,737 has recently experienced a significant price increase following a volatile trajectory towards the end of 2024. Approaching its previous peak of $108,268, Bitcoin is currently trading at $102,235, having gained 10% in value over the past week.
Bitcoin’s Potential to Reach All-Time Highs
Many individuals wonder whether Bitcoin can break its all-time high again by December 2024. After reaching $108,268 on December 18, Bitcoin subsequently fell by approximately 14% in the following days.
Decrease in Bitcoin Liquidity
Analysts from Bitfinex noted a dramatic drop in Bitcoin liquidity. According to their analysis, the Liquidity Inventory Ratio has plummeted from 41 in October to just 6.6 now. This suggests that Bitcoin’s supply is tightening, making it difficult to meet market demand.
The Liquidity Inventory Ratio dropped from 41 in October to just 6.6 now, indicating a rapid tightening of current Bitcoin liquidity, particularly noticeable during strong rallies in the first and fourth quarters of 2024.
The Liquidity Inventory R…
