Bitcoin Price Hits $94K as Crypto Volume Dives to Lowest Since Late 2023

Bitcoin reached its highest levels in nearly a month on Monday, as geopolitical tensions and thin market liquidity drove risk assets higher. BTC/USD hit $94,026 on Bitstamp, marking a new year-to-date peak.

The S&P 500 and Nasdaq Composite Indexes both rose 1% in early trading, while gold hit a new high above $4,455 per ounce. This suggests a broader risk-on environment amid geopolitical developments.

Bitcoin's price action has followed a similar trend to equities and gold. The asset passed its 50-day exponential moving average and 2025 yearly open price of $93,500.

Why Did This Happen?

The rise in Bitcoin's price coincided with a US-Venezuela geopolitical development, which triggered a rally in risk assets and precious metals.

Bitcoin's recent strength has been supported by a thin order book and low trading volume, which some traders see as a sign of fragile liquidity. Analyst Roman noted that low-volume pumps during holidays often fail to sustain.

Willy Woo also highlighted weak liquidity as a concern, calling it a "ghost town out there" despite short-term gains.

How Did Markets React?

Despite Bitcoin's rally, on-chain data shows crypto spot trading volume has fallen to its lowest level since late 2023. This contrasts with the recent price action, raising questions about the sustainability of the move.

The altcoin market, represented by the Total3 index, has held critical support around $784 billion, signaling potential for a new rally. This comes after a 33% correction in October following a historic market crash.

Market participants are closely watching whether the current price action will lead to a sustained "altseason." Analysts have noted that the traditional Bitcoin-driven altseason pattern has not emerged in 2025.

What Are Analysts Watching Next?

Trader Michaël van de Poppe expects a "clear-cut breakout" over the next week if Bitcoin can hold above $94,000. He believes $100,000 is the next key target.

Glassnode analysts warn that the recent price strength is not backed by strong fundamentals or trading volume. They highlight that demand is weakening despite the rally.

CryptoQuant's Julio Moreno, however, sees Bitcoin in a bear market and anticipates a bottom in the $56,000 to $60,000 range.

ETF activity remains a key factor. Spot Bitcoin and Ether ETFs have seen mixed inflows, with some products recording outflows in December. However, net inflows for the year reached $32 billion.

ETF inflows for XRP and other altcoins have also risen, with over $267 million in XRP ETF inflows by late December 2025.

The crypto market is navigating a period of uncertainty. While Bitcoin has shown short-term strength, low trading volume and thin liquidity remain major concerns. Analysts are split on whether the current rally will hold or whether it is a temporary rebound.