The holiday season has brought a period of illiquidity to the cryptocurrency market, with daily Bitcoin payments hitting their lowest point of the year. According to data from blockchain.com, confirmed Bitcoin payments sank to 623,434 on December 26, marking the lowest point of the year.
Confirmed Bitcoin Payments: A Measure of Investor Activity
Confirmed Bitcoin payments are transactions that have been accepted and included in a block by the blockchain network’s consensus mechanism, making them irreversible. Metrics like the number of confirmed payments can be used to gauge investor activity on the Bitcoin network. On December 17, the Bitcoin price crossed the $108,000 all-time high, securing over 857,000 confirmed payments – a 37% increase from yesterday’s 623,000.
Bitcoin Price and Confirmed Payments: A Yearly Chart
| Date | Confirmed Payments | Bitcoin Price |
| — | — | — |
| Dec 26, 2024 | 623,434 | $94,512 |
| Dec 17, 2024 | 857,000 | $108,000 |
| Nov 1, 2024 | 754,321 | $90,212 |
| Oct 15, 2024 | 831,219 | $105,121 |
Source: Blockchain.com
Bitcoin Analysts Expect Imminent Price Recovery
Despite the low confirmed payments, Bitcoin analysts are expecting an imminent price recovery above $105,000 entering the end of the holiday period. The holiday season is often associated with low institutional liquidity, but market experts believe that this could be a buying opportunity for investors.
"Vocal traders are now showing severe FUD (Fear, Uncertainty, and Doubt), and that’s good news for contrarians who know markets move in the opposite direction of retail’s expectations," wrote market intelligence platform Santiment on December 22. The platform noted that 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.
Weak Social Sentiment Points to Imminent Price Recovery
However, this low retail investor sentiment could be a sign of a forthcoming Bitcoin breakout. On December 22, Cointelegraph reported that social media sentiment around Bitcoin fell to its lowest level of 2024. However, this could also indicate that investors are becoming increasingly bearish on the market.
President-elect Donald Trump’s Inauguration: A Potential Catalyst
Other crypto analysts are also expecting an end to Bitcoin’s correction under $100,000. On December 20, Bitcoin’s daily chart produced three consecutive red candles for the first time since the first week of November – a period that coincided with Donald Trump’s US presidential election victory.
"Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration," said Ryan Lee, chief analyst at Bitget Research. "The expected trading range for BTC this week is $94,000 – $105,000."
President-elect Donald Trump’s Inauguration: A Potential Catalyst
President-elect Donald Trump’s inauguration could be the next significant Bitcoin catalyst on January 20, 2025. The event has the potential to drive prices higher, with some analysts predicting that it could reach as high as $500,000.
Conclusion
The holiday season has brought a period of illiquidity to the cryptocurrency market, with daily Bitcoin payments hitting their lowest point of the year. However, despite this, Bitcoin analysts are expecting an imminent price recovery above $105,000 entering the end of the holiday period. The event could be driven by President-elect Donald Trump’s inauguration, which has the potential to drive prices higher.
What does this mean for investors?
The low confirmed payments and weak social sentiment around Bitcoin could indicate that investors are becoming increasingly bearish on the market. However, this could also be a buying opportunity for investors who believe in the long-term prospects of the cryptocurrency. The event of President-elect Donald Trump’s inauguration could provide a significant catalyst for the market, driving prices higher.
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