2 main drivers for the unexpected price increase at the end of the year in the crypto market

The main drivers for the sudden bull run in the cryptocurrency market at the end of 2024 can be summarized as follows:

Trading volume and whale accumulation

- Low trading volume: At the end of 2024, the crypto market witnessed a decrease in trading volume due to the holiday season, creating conditions for large investors (whales) to accumulate assets. Data from Santiment shows that, during periods of low trading, whales often strongly influence prices, as they are able to buy in large quantities which can help prices rise.

- Whale Accumulation: Whales took advantage of the period of falling prices to buy more assets, including Bitcoin and other altcoins. The increase in the number of whales holding Dogecoin in this context also indicates bullish potential for memecoins in the future.

Increase in stablecoin reserves on Binance

- Stablecoin reserves soar: Data from CryptoQuant shows that the Binance exchange holds about 29 billion USD in stablecoin reserves such as USDT and USDC. This increase could positively support the market, providing liquidity for trading and promoting stability amid volatility.

- Bushing signal: Stablecoins act as a bridge between fiat money and cryptocurrency, helping traders and organizations easily trade without being much affected by market fluctuations, thereby may lead to unexpected price increases in the near future.

These two factors not only help stimulate prices in the short term but also create a positive psychology in the investor community, thereby leading to an increase in the value of cryptocurrencies in the last days of 2024.