Confirmed Bitcoin payments hit yearly low amid holiday illiquidity

As a seasoned researcher with over two decades of experience in the financial markets, I’ve seen trends come and go, and I must admit, the crypto space has been one of the most intriguing and dynamic sectors to follow in recent years. The latest dip in daily Bitcoin payments to a yearly low is a phenomenon I’ve noticed during the holiday season before, which can be attributed to reduced institutional liquidity.

The daily Bitcoin transactions are at their lowest point for the year, showing the typical liquidity struggle experienced during the holiday season.

On December 26th, as per blockchain.com’s data, daily Bitcoin (BTC) transactions hit a record low for the year, amounting to approximately 623,434 payments.

Payments made using Bitcoin become permanent once they have been approved by the consensus mechanism within the blockchain network and added to a block, rendering them impossible to reverse.

The quantity of verified transactions could serve as a measure for assessing investor engagement within the Bitcoin system.

On December 17th, the price of Bitcoin reached a new record high of $108,000, processing approximately 857,000 verified transactions – that’s a 37% increase compared to the 623,000 confirmed Bitcoin transactions from the previous day.

As the holiday season winds down, I’m optimistic about the upcoming Bitcoin price surge, according to analyst predictions that surpass the $105,000 mark. Historically, this time of year tends to have lower institutional liquidity, which could make for a more bullish market.

Weak Bitcoin social sentiment points to an imminent price recovery

A strong positive shift in public opinion about Bitcoin could signal a forthcoming rebound for the world’s leading cryptocurrency, based on its current sentiment.

2024 saw a dip in overall public opinion towards Bitcoin, with approximately four positive comments for every five negative ones concerning Bitcoin, as per a report by CryptoMoon on December 22.

In a recent blog post on December 22, market intelligence platform Santiment suggested that the current low investor sentiment among retail investors might signal an imminent Bitcoin price surge.

“Vocal traders are now showing severe FUD, and that’s good news for contrarians who know markets move in the opposite direction of retail’s expectations.”

As a crypto investor, I’ve noticed that several analysts are predicting an end to Bitcoin‘s correction below $100,000. Interestingly, on December 20th, we saw three consecutive red candles on the daily chart for the first time since early November, which happened to be around the same period leading up to the US election victory of Donald Trump.

According to Ryan Lee, the current dip in Bitcoin’s price is a natural consequence of reduced trading activity during holidays, as reported by CryptoMoon.

“Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration… The expected trading range for BTC this week is $94,000 – $105,000.”

The upcoming inauguration of President-elect Donald Trump on January 20, 2025, might serve as a major trigger for Bitcoin’s growth.

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2024-12-27 13:14