Bitcoin Hits New High but Faces Declining Trading Volume

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Bitcoin reached an all-time high of $108,268 on December 18, but the anticipated year-end rebound did not materialize, resulting in a 14% price drop in the following days. In recent weeks, trading volumes for Bitcoin and other major cryptocurrencies have significantly declined, particularly with a 64% drop in trading volume after Bitcoin's historic peak. This trend marks a phase of lower volatility in the market, with noticeably slowed investor activity.

Trading Volume and Whale Accumulation

Experts point out that due to the ongoing low trading volume and whale accumulation, the prices of Bitcoin and other cryptocurrencies may experience significant volatility. Analysts from Swissblock and Santiment indicate that despite the current market being relatively subdued, Bitcoin still has the potential for an increase before the end of the year. If large investors (whales) continue to buy Bitcoin, this will provide momentum for a market recovery. Meanwhile, the low trading volume environment may make short-term market activity appear unstable, potentially spurring more investor participation.

Market Outlook and Year-End Predictions

Analysts generally believe that Bitcoin's price momentum remains bullish, indicating a potential recovery before the year's end. The current trading range for Bitcoin is between $90,000 and $100,000, and a breakout from this range is expected to provide direction for the market. Analysts from Santiment also note that the low trading volume in the cryptocurrency market may persist for a while, creating favorable conditions for whale accumulation, which could lead to sudden price increases in the future.

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