Bitcoin price struggles to maintain high $90,000 prices.
Despite this, Bitcoin demand skyrockets in December.
Analyst shares the many factors behind BTC demand increase.
As Bitcoin price struggles to maintain dominance, analysts note a growing demand for Bitcoin (BTC) in December. To highlight, accumulator addresses added a staggering 225,280 BTC to their holdings, reflecting an 82.6% increase compared to the previous month, according to data from CryptoQuant.
Bitcoin Demand Skyrockets in December
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This surge in accumulation underscores a growing appetite for Bitcoin, even amid fluctuating market conditions. Moreover, the total sell-side liquidity dropped by 590,000 BTC during December, with 520,000 BTC disappearing from the market in a concentrated period between December 22 and 23.
This sharp decline in available Bitcoin indicates strong absorption of sell-side pressure by eager buyers. Large over-the-counter (OTC) trading desks also experienced a drop in their Bitcoin supply, declining from 421,000 BTC to 403,000 BTC. This movement suggests that institutional and large-scale investors remain highly active in the market, driving continued demand.
Factors Behind Increased BTC Demand
Meanwhile, whales sold 8,600 BTC during December, short-term holders increased their positions, adding 641,789 BTC throughout 2023. This marks a total of 3.81 million BTC held by short-term investors, nearing an all-time high. Despite the bullish accumulation trends, caution is warranted.
The supply of Tether (USDT) on exchanges is decreasing, while BTC supply is showing a slight uptick. These signals may point to short-term bearish pressure. Overall, demand is effectively absorbing selling pressure, and the long-term outlook for Bitcoin remains bullish. Despite potential short-term corrections, the broader market trajectory for Bitcoin continues to inspire confidence.
The post Bitcoin Demand Skyrockets in December, Analyst Shares Factors Behind BTC Demand Boost appeared first on Crypto News Land.
