Bitcoin News: Spot Demand Drives Recovery Amid Market Volatility

Bitcoin has shown remarkable resilience, bouncing back from a sharp dip below $90,000 to surge above $108,500 within nine days. Analysts attribute this recovery to increased spot demand, particularly from U.S.-based crypto exchanges. The latest Bitfinex Alpha report highlights Bitcoin's relative strength compared to the stock market, signaling a potential shift in investor sentiment.

Bitcoin Spot Demand Picks Up, But There’s a Catch: Bitfinex Alpha

Over the last nine days, bitcoin (BTC) has experienced a sharp dip below $90,000 and a strong recovery above $108,500. Analysts at the crypto exchange Bitfinex attributed the rebound in price to spot demand picking up, especially among crypto exchanges based in the United States. According to the newest edition of the Bitfinex Alpha report, bitcoin’s recovery reflected relative strength compared to the stock market. The digital asset rallied 10% by the end of last week, with a peak-to-trough move of more than 18%. On January 13, BTC fell to $89,300, triggering roughly $818 million in both short and long liquidations. However, as U.S. President Donald Trump’s inauguration approached, bitcoin’s value increased alongside spot and institutional demand.

Bitcoin Mining Difficulty Surges 24% Since August 2024

Bitcoin is experiencing significant volatility, with prices swinging dramatically. After hitting a low of $89,100 last week, Bitcoin surged to a new all-time high yesterday. Analyst Axel Adler notes a 24% increase in mining difficulty since August 2024, indicating heightened miner activity and Optimism about Bitcoin's future.

The Top Crypto Picks of January 2025 That Could Explode Your Portfolio: Don’t Miss Out!

The blockchain ecosystem is constantly evolving, and 2025 is poised to be another groundbreaking year for cryptocurrencies. Among the top crypto picks for January 2025 are Qubetics, Bitcoin, and Chainlink, each playing a transformative role in reshaping how blockchain technology is utilized and adopted globally. Qubetics is pioneering interoperability in Web3, addressing the significant challenge of interoperability in the rapidly expanding blockchain ecosystem. Most blockchain networks function in silos, limiting seamless data exchange and cross-chain transactions. This lack of integration undermines the efficiency and utility of decentralized applications (dApps). Qubetics aims to solve these issues by enabling seamless data exchange and cross-chain transactions.

Legacy Blockchain Is Holding Crypto Back, and Scalability Is the Key to Its Survival

Legacy blockchain networks like Bitcoin were groundbreaking in their time 10 years ago. They showed the world what was possible with decentralized technology. But their glaring limitations now hold the entire industry back. These systems are slow, expensive, and incapable of handling the transaction volumes required for global, everyday payments. If crypto is to achieve mass adoption, the industry must accept a hard truth: scalability isn’t just a technical challenge; it’s the defining barrier to crypto’s survival. Cryptocurrency’s reliance on early blockchain structures is a fundamental flaw that’s rarely acknowledged. Bitcoin, for all its strengths as a secure and decentralized store of value, processes just around 10 transactions per second.

Trader Greed Strikes Again: Bitcoin Corrects To $102,000 After FOMO Spike

Bitcoin has observed a retrace from its new all-time high after users on major social media platforms displayed overexcitement. The analytics firm Santiment noted that during the recent Bitcoin rally to the new all-time high, social media platforms saw a spike in FOMO (Fear of Missing Out). Users on these platforms began speculating about future price levels, which is common during periods of high volatility. Santiment used the 'Social Volume' indicator to track the number of posts, threads, and messages mentioning Bitcoin on major social media platforms. This metric helps gauge the level of interest and speculation surrounding Bitcoin's price movements.