Tom Lee, Chairman of BitMine, has projected an imminent December rally for Bitcoin, suggesting the market is preparing for a significant recovery before the year ends. According to the expert, although the cryptocurrency has suffered due to low liquidity following the October liquidation shock, the year’s highest performance days could still materialize in the coming weeks of 2025.
Technical data supports this optimistic outlook, showing a crucial shift in market participant behavior during the last quarter. The 90-day Spot Taker Cumulative Volume Delta (CVD) has moved from massive selling to a neutral state, signaling clear exhaustion of bearish pressure. Furthermore, on the Nexo platform, Bitcoin now accounts for between 53% and 57% of all collateral, which significantly reduces the supply available for immediate sale.
Can current low liquidity amplify volatility towards new highs?
On the other hand, it is vital to understand the impact of the October liquidation event, which severely damaged market maker balance sheets. Lee describes these firms as the “central banks” of the crypto sector, whose temporary withdrawal caused a contraction in market depth. However, this fragility scenario often precedes explosive movements when institutional capital returns. Thus, the current structure could become the necessary fuel for a bullish reversal.
Likewise, the 30% drop from the all-time high of 126,000 dollars has cleared excess speculative leverage, leaving a healthier environment. If the Federal Reserve adopts a more flexible stance as expected, the combination of thin order books and renewed demand could catapult the price quickly. Nevertheless, a latent risk exists in leverage, as any abrupt drop could trigger cascading liquidations in collateralized positions.
The stability of debt positions on lending platforms will be decisive for the health of the digital economy in the short term. Therefore, although long-term holders show conviction by not selling, the market remains in a delicate transition phase. The absence of aggressive selling pressure is positive, but a demand catalyst is still required to confirm the definitive trend change.
