CryptoQuant has released data indicating that the buying volume of Bitcoin on Binance has steadily formed higher lows since October 28, suggesting that market buying pressure continues to increase. Bitcoin is expected to rise in the coming days; however, Matrixport issued a reminder in its latest weekly report that the Bitcoin bull market in 2025 may face various potential risk factors.
(Background: $14 billion in Bitcoin options are set to expire today, Deribit: This will be a key market driver; a rebound in altcoins is anticipated.)
(Additional context: Does believing that buying 1 Bitcoin can lead to wealth, as claimed by the rich daddy, seem credible to you?)
Since the 19th, Bitcoin has consistently remained below the significant psychological barrier of $100,000, leading to market speculation about when Bitcoin might return to this major level. Positive signs have now emerged. A CryptoQuant analyst stated today that the buying volume of Bitcoin on Binance has reached $8.3 billion, and since October 28, the buying volume has gradually formed higher lows:
This indicates an increase in investor interest and continued buying pressure. Although the market may correct due to overheating, the sustained rise in buying volume suggests that Bitcoin could rise in the coming days.
The analyst explained that the buying volume on Binance refers to the total amount of buy trades executed by takers on the exchange. Takers are market participants who buy at the current price on the order book, utilizing the existing market liquidity. An increase in this indicator typically signifies rising investor interest, enhanced buying pressure, and strong market demand, which may lead to price increases.
It is noteworthy that CryptoQuant also released data yesterday indicating that Bitcoin reserves on Binance have recently fallen below 570,000 BTC, marking the lowest level since January of this year. When exchange reserves decrease, it usually indicates that investors are transferring Bitcoin to cold wallets, reflecting their confidence in the long-term price trend.
Two months after Binance’s Bitcoin reserves dropped to similar levels in January, the price of Bitcoin surged by 90% to $73,679, setting a new high at that time. If Bitcoin follows the same pattern again, it could potentially reach $187,500 within a few months, based on current prices.
Risks Facing the 2025 Bitcoin Bull Market
However, Matrixport’s latest weekly report warns that the Bitcoin bull market in 2025 may face several potential risk factors. Firstly, BlackRock recently stated that the decentralized nature of the Bitcoin protocol may not fully guarantee the supply cap of 21 million coins. This statement has sparked discussions, but it must be viewed in the relevant context.
Recent developments, such as Google announcing its 105-qubit Willow quantum chip, have reignited discussions about the potential long-term threats to Bitcoin’s security posed by quantum computing. Although these threats are still in their early stages and lack the scale and stability to directly undermine Bitcoin’s cryptographic defenses, the theoretical risks are worth monitoring.
Additionally, the Federal Reserve has recently raised its inflation expectations, partly due to concerns over potential tariffs under Trump, but the actual impact may be limited. Matrixport believes that inflation concerns may not be significant next year, providing room for the Fed to maintain a dovish stance.
Matrixport further points out that historical data shows that Bitcoin bull markets often peak during times of heightened regulatory pressure. As the U.S. gradually resolves regulatory issues, such as the approval of Bitcoin spot ETFs, the risks associated with the end of this bull market may be driven by other factors. If Trump is elected, the Federal Reserve may adopt a more hawkish monetary policy, introducing new uncertainties for Bitcoin and the cryptocurrency market.
