Bitcoin's price soared to a record high of $108,000 earlier this month, driven by rising demand and decreasing supply.

However, on December 20, 2024, the crypto market faced a significant downturn, largely influenced by the Federal Reserve's announcement of a more hawkish monetary policy.

This shift led to over $1 billion in leveraged positions being liquidated, causing Bitcoin's price to drop more than 8%, falling below $96,000.

Currently, the amount of Bitcoin available for sale has plummeted to its lowest level since October 2020, with only 3.397 million Bitcoins on the market.

In 2024, sell-side liquidity has decreased by 678,000 BTC, further tightening the market as demand for Bitcoin continues to rise.

Accumulator addresses, which are wallets that consistently buy Bitcoin without selling, are increasing their holdings at an unprecedented rate of 495,000 Bitcoin per month, exacerbating the liquidity crunch.

Despite the recent price drop, Bitcoin demand has remained strong, entering 'expansion territory' since late September with a monthly increase of 228,000 Bitcoin.

Moreover, the market capitalization of USD-based stablecoins, including Tether and USD Coin, has surged to $200 billion, reflecting a $35 billion increase since late October.