Bitcoin's comeback amidst liquidity crunch and positive macro signals

airdrop_whisperer · 2025-12-26T19:14:01+00:00

The cryptocurrency market experienced a dramatic shift, initially seeing Bitcoin drop 8% due to concerns over Japan's monetary policy. However, a liquidity sweep by major holders helped reverse the trend. Optimism from U.S. policy changes and on-chain data signals suggest Bitcoin could target $95,000, $98,500, and $102,000, supported by favorable conditions.

airdrop_whisperer

2025-12-26 19:14:01

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Last night, the cryptocurrency market witnessed an interesting drama. Initially, Bitcoin was forced down 8% due to concerns related to Japan’s monetary policy decisions, triggering a domino effect across the entire market with continuous liquidations. However, what happened next revealed the true strength of the market.

Signs of “whale” activity in the market

As selling pressure peaked, a phenomenon known as liquidity sweep appeared. Large accumulation entities quickly swept through lower price levels, adapting to market sentiment and redirecting the trend. This is not a coincidence – it is a deliberate action aimed at reigniting positive energy after the initial sell-off wave.

Macro factors creating new momentum

A significant move from Washington also contributed greatly to this recovery. President Trump’s decision to appoint Kevin Hassett as the new head of the Federal Reserve created an optimistic atmosphere about the prospects of interest rate cuts. This expectation boosted risk assets, including Bitcoin, with capital flows shifting from traditional investment channels (especially gold) to technology assets.

On-chain data signals optimism

Current on-chain indicators and price actions suggest BTC could tap into potential at three key levels: $95,000, $98,500, and $102,000 if this recovery trend continues. The current price at $87.37K leaves a significant gap for further recovery.

The combination of positive liquidity sweep, capital flow from gold to Bitcoin, and favorable monetary policy environment has formed a perfect triangle of forces to support upward momentum in the coming days.

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