Bitcoin's price fell below $100,000 in mid-December, struggling to recover due to several factors. The U.S dollar index surged to 109, indicating a stronger dollar, impacting Bitcoin's price negatively. The increased dollar strength limits Bitcoin's upside potential and weakens demand for risk assets like cryptocurrencies. Outflows from Bitcoin ETFs, notably the BlackRock iShares Bitcoin Trust (IBIT), reached $332M, suggesting declining demand. Institutional and retail markets show reduced demand, as seen in Bitcoin’s Stablecoin Supply Ratio hitting its highest level in seven days. Despite reduced demand, traders remain bullish according to the Fear and Greed Index, currently at 74, indicating optimism. Traders' positive sentiment could support Bitcoin's price, but insufficient buy-side pressure might limit gains.

Tricky times for Bitcoin, but the bullish sentiment could offer a silver lining. Let's watch how trader optimism influences the market! 📈