Bitcoin Payments Hit Yearly Low Amid Holiday Season Illiquidity
As the holiday season reaches its peak, Bitcoin’s daily payment activity has sunk to its lowest point of the year. According to data from Blockchain.com, confirmed Bitcoin payments plummeted to 623,434 on December 26, marking a significant decline in investor activity on the network.
Understanding Confirmed Bitcoin Payments
For those new to the world of cryptocurrency, confirmed Bitcoin payments refer to transactions that have been accepted and included in a block by the blockchain network’s consensus mechanism, making them irreversible. This metric serves as a valuable indicator of investor activity on the Bitcoin network.
A Look Back at Bitcoin’s Price Movement
Interestingly, Bitcoin’s price movement has been quite volatile in recent weeks. On December 17, the cryptocurrency’s price crossed the $108,000 all-time high, securing over 857,000 confirmed payments. This represents a 37% increase from the 623,000 confirmed BTC payments on December 26.
Analysts Predict Imminent Price Recovery
Despite the current lull in activity, Bitcoin analysts are expecting an imminent price recovery above $105,000 as the holiday period comes to an end. This prediction is based on the historical trend of low institutional liquidity during the holiday season, which often leads to a surge in activity once the period ends.
Weak Social Sentiment Points to Price Recovery
Another indicator pointing to an imminent price recovery is the weak social sentiment around Bitcoin. According to a report by Cointelegraph on December 22, social sentiment around Bitcoin fell to its lowest level of 2024, with an average ratio of four to five positive versus negative Bitcoin-related comments. Market intelligence platform Santiment notes that this low retail investor sentiment could be a sign of an incoming Bitcoin breakout.
What’s Next for Bitcoin?
As we enter the new year, several factors could influence Bitcoin’s price movement. The inauguration of President-elect Donald Trump on January 20, 2025, could be a significant catalyst for the cryptocurrency. Additionally, the expected trading range for BTC this week is $94,000 – $105,000, according to Ryan Lee, chief analyst at Bitget Research.
Key Takeaways
* Bitcoin payments have hit a yearly low amid holiday season illiquidity. * Analysts predict an imminent price recovery above $105,000. * Weak social sentiment around Bitcoin could be a sign of an incoming breakout. * The inauguration of President-elect Donald Trump could be a significant catalyst for Bitcoin.
What do you think is in store for Bitcoin in the coming weeks? Share your thoughts in the comments below!
Source: Cointelegraph.com
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