Since December 2024, institutional Bitcoin holders have been purchasing significant amounts of the cryptocurrency, buying more than 34,000 BTC, worth approximately $3.2 billion. This comes after a major sell-off by these holders when Bitcoin’s price peaked above $108,000 on Dec 17. The sell-off, primarily by wallets holding between 1,000 and 10,000 BTC, saw 79,000 BTC dumped in the week following the peak, which led to a 15% correction in its value.

Blocktrends’ analyst Cauê Oliveira explained that large investors took advantage of the price dip below $95,000 to accumulate Bitcoin through smaller, multiple trades.

The move helped drive the recovery in Bitcoin’s price. As of now, Bitcoin is trading around $94,900, reflecting a minor 2.3% drop in value due to broader market conditions, with US economic data dampening hopes for further interest rate cuts.

Bitcoin’s price fluctuations have not deterred analysts from forecasting an optimistic outlook. Fidelity Digital Assets’ Matt Hogan predicted that more nation-states, central banks, and sovereign wealth funds will likely take strategic positions in Bitcoin in the near future. Bitcoin's market liquidity has been shrinking rapidly, according to a Jan 6 note from Bitfinex analysts, suggesting that the worst of the downward pressure may have already passed.

Analysts have projected that Bitcoin’s price could see a strong rally in 2025, especially with the anticipation of pro-crypto policies under incoming US president Donald Trump. Additionally, growing adoption by governments could further boost the cryptocurrency’s value. Blockware analysts believe that the introduction of a US Bitcoin reserve could drive Bitcoin’s price to over $150,000 in a worst-case scenario, while in the best-case scenario, it could rise to over $400,000.

Despite Bitcoin's recent price volatility, the ongoing institutional buy-up signals strong investor confidence and hints at a promising future for the cryptocurrency. The growing interest from both institutional players and governments suggests that Bitcoin’s value could surge, especially if pro-crypto policies take shape in the coming months.