Bitcoin next year: rebound or decline?

Crypto Now

"Fundamentals at their best, sentiment will turn around"

"If the market does not recover, it may be pushed to 60,000 dollars"

Around Christmas, after expectations for a 'Santa rally' in the digital asset market went unmet, major cryptocurrencies including Bitcoin have continued to consolidate within a narrow range. Market attention is now focused on whether institutional investors' portfolio reshuffling in the first quarter of next year will lead to a rebound.

According to CoinMarketCap on the 28th, Bitcoin recently showed 1% percentage-point volatility and traded at the 88,000-dollar level. Around Christmas it briefly fell into the 86,000-dollar range, dampening investor sentiment, but there was no sharp sell-off.

Despite price stagnation, experts are paying attention to internal improvements in the market. According to CryptoQuant, whale (large investor) funds flowing into Binance this month have plunged by about 50% compared to the previous month. This suggests that a significant portion of the short-term selling pressure that had been weighing on the market has been resolved. Pong Li, Strategy CEO (CEO), said, "Bitcoin's fundamentals are at an all-time high," adding that "this is a time to focus on long-term intrinsic value rather than short-term price volatility." Global asset manager VanEck also pointed to Bitcoin's relatively poor performance versus the Nasdaq this year, identifying it as an asset that would show the most elastic rebound when liquidity is supplied.

Market outlooks for early next year are mixed. Optimists expect that institutional investors' 'portfolio rebalancing' funds in the first quarter of next year will become a powerful catalyst for the market. CoinCare predicted, "Once the year-end liquidity gap passes, new institutional funds will flow in early next year and sentiment will reverse."

Cautionary views are also strong. Jeff Park, an adviser at Bitwise, warned, "If volatility does not pick up, meaningful sharp rises may be difficult next year as well." Research firm Fundstrat said in a recent report, "If market momentum is not restored, Bitcoin's price could be pushed down to 60,000 dollars in the first half of next year."