The first two weeks of 2025 demonstrated relative stability in the price of the first cryptocurrency, although it was not without noticeable fluctuations. In particular, on January 7, Bitcoin reached more than $102,000, after which it corrected.
Interestingly, the main trigger for the decline was the US economic performance. Employment statistics exceeded analysts' expectations: the number of open vacancies reached 8.1 million against the forecast of 7.7 million, and the index of business activity in the service sector was 54.1 instead of the expected 53.3. These positive economic data may affect the US Federal Reserve's decision to cut rates, which in turn may reduce investor interest in risky assets, including cryptocurrencies.
Additional pressure on the price was created by the actions of a major institutional player, BlackRock. According to the Arkham analytical platform, on December 26, the company sold $188.7 million worth of Bitcoin and transferred $1.88 billion worth of cryptocurrency to the Coinbase exchange.
However, there are also positive signals: the number of small Bitcoin holders has reached a historic high. Analytical platform Glassnode reports more than 37 million wallets with a balance of $100 to $1,000 at the beginning of the year, which indicates the growing popularity of cryptocurrency among retail investors.
In terms of technical analysis, Bitcoin has been trading in a wide range between resistance ($108,364) and support ($90,742) for a month and a half. The absence of a clear trend is confirmed by the fall in the ADX indicator, and the price drop below the 50-day moving average indicates that sellers are dominating the market.
The Fear and Greed Index is down 24 points from two weeks ago and currently stands at 50 points, reflecting the neutral sentiment of crypto investors, balancing between fear and greed.
