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IS BITCOIN FACING A LIQUIDITY SQUEEZE? BIANCO LINKS 2025 TREND TO THIS KEY INDICATOR

ByMolly McNearney

Bitcoin is currently trading near $96,466, showing a mild recovery but still sitting well below the highs reached earlier this year. Market attention has shifted to one important chart: the rising average purchase price of spot Bitcoin ETF inflows.

Data shared by Jim Bianco of Bianco Research shows that roughly $59 billion has flowed into the first ten spot Bitcoin ETFs since their launch in January 2024. Those inflows now have an average cost basis of $90,146. With Bitcoin trading only slightly above that level, total unrealized gains have narrowed to about $2.94 billion, or just 4.7%.

Bianco Highlights ETF Liquidity Risk

Jim Bianco warns that this matters because if ETF investors start selling, liquidity could tighten quickly. He notes that over the past 22 months, money market funds would have generated higher returns than Bitcoin, raising questions about its performance compared to traditional assets.

2025 Performance Lag Sparks Concern

So far, 2025 has been a challenging year for crypto. Bitcoin opened the year at $93,463, dipped below that level last week, and is now only up 2.6% year-to-date. Ethereum has struggled even more, falling 3.7% since January from its $3,331 starting point.

ETF activity has added extra pressure. In a single trading session, net outflows totaled $869.9 million, intensifying the selloff and driving the Crypto Fear & Greed Index to one of its lowest levels of the year.

Bianco’s chart illustrates this trend clearly: unrealized profits from Bitcoin ETFs peaked at $23.9 billion on October 6, 2025, before collapsing to $7.8 billion in November, highlighting how investor behavior can amplify market swings.

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Voices of Optimism Persist

Not all market participants are bearish. Bitwise CEO Hunter Horsley told CNBC that current Bitcoin levels represent a “reasonable entry point,” noting that the cryptocurrency continues to capture market share from gold.

Michael Saylor expressed similar confidence, emphasizing that his firm’s position remains strong even if Bitcoin were to fall by 80%. He highlighted Bitcoin’s five-year average annual return of 50%, which has outperformed many major traditional asset classes.

Bitcoin Price Forecast – Technical Outlook

Technically, Bitcoin shows a slightly bullish outlook as it tries to stabilize after breaking below a long-term ascending trendline—a structural shift that still favors sellers.

BTC is holding above the $94,500–$92,000 demand zone, but repeated failures to reclaim the 20-EMA indicate that recovery attempts remain fragile.

ETHEREUM USERS PAY ONLY $0.04 PER TRANSACTION AMID REDUCED ACTIVITY

  • The RSI at 34 reflects weakening momentum, with no bullish divergence visible.
  • A daily close below $92,000 could open a path toward $91,600, then $83,000.
  • Conversely, reclaiming $103,000 with a bullish engulfing candle would shift momentum toward $106,700.

Bitcoin Hyper: Bringing BTC to Solana-Level Speed

Bitcoin Hyper ($HYPER) is ushering in a new phase for the Bitcoin ecosystem. While BTC remains the benchmark for security, Bitcoin Hyper adds what it has historically lacked: Solana-level speed. This enables lightning-fast, low-cost smart contracts, decentralized apps, and even meme coin creation—all secured by Bitcoin’s robust network.

Audited by Consult, the project emphasizes trust, scalability, and adoption. Early momentum is strong: the presale has already surpassed $27 million, with tokens priced at just $0.013265 before the next price increase.

CRYPTO FUNDS FAVOR SOLANA OVER BITCOIN AND ETHEREUM, DRIVING SOL MOMENTUM

As Bitcoin usage grows and demand for efficient BTC-based applications rises, Bitcoin Hyper positions itself as a bridge connecting two of crypto’s largest ecosystems. If Bitcoin laid the foundation, Bitcoin Hyper aims to make it fast, flexible, and engaging for a new generation of users.

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