Confirmed Bitcoin payments have reached their lowest point of the year, hitting 623,434 on December 26, amid the holiday period’s characteristic market illiquidity. This drop is significant compared to the 857,000 confirmed payments recorded at the Bitcoin price peak of $108,000 on December 17, representing a decline of approximately 37%.
Confirmed Bitcoin payments are those transactions the blockchain network’s consensus mechanism has validated and are irreversible once included in a block. Such metrics are utilized to assess investor activity on the Bitcoin network.
Despite the seasonal slowdown, analysts are optimistic about a price recovery, predicting Bitcoin could climb above $105,000 as institutional liquidity returns post-holiday. Furthermore, social sentiment around Bitcoin has plummeted to its lowest levels of 2024, suggesting to some market watchers that a significant breakout could be imminent. An influx of vocal negativity, known as FUD (fear, uncertainty, and doubt), often signals a contrarian buying opportunity to seasoned traders.
The ongoing downtrend is viewed as an expected outcome of holiday illiquidity. However, trading activity is anticipated to pick up, with Bitcoin projected to trade in the range of $94,000 to $105,000 as markets prepare for potential fluctuations surrounding political events, such as the inauguration of President-elect Donald Trump on January 20, 2025. This event could act as a catalyst for further Bitcoin price movements.
