Daily Bitcoin Payments Reach Yearly Low Amid Holiday Illiquidity
The holiday season has brought a period of illiquidity to the cryptocurrency market, characterized by low daily Bitcoin payments. According to data from blockchain.com, confirmed Bitcoin payments sank to 623,434 on December 26, marking the lowest point of the year.
What Are Confirmed Bitcoin Payments?
Confirmed Bitcoin payments are transactions that the blockchain network’s consensus mechanism has accepted and included in a block, making them irreversible. These metrics can be used to gauge investor activity on the Bitcoin network. On December 17, Bitcoin’s price crossed the $108,000 all-time high, securing over 857,000 confirmed payments, which is 37% more than yesterday’s 623,000.
Confirmed Bitcoin Payments and Price
| Date | Confirmed Payments | BTC Price |
| — | — | — |
| Dec. 26 | 623,434 | $96,500 |
| Dec. 17 | 857,000 | $108,000 |
Source: Blockchain.com
Meanwhile, Bitcoin analysts are expecting an imminent price recovery above $105,000 as the holiday period comes to a close. This is often associated with low institutional liquidity.
Weak Social Sentiment Points to Imminent Price Recovery
Weak social sentiment around Bitcoin suggests that an imminent price recovery may be on the horizon for the world’s largest cryptocurrency. According to Cointelegraph, 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.
Retail Investor Sentiment: A Sign of a Forthcoming Breakout?
However, this low retail investor sentiment could be a sign of a forthcoming Bitcoin breakout. Market intelligence platform Santiment wrote in a December 22 X post:
‘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.’
BTC Social Media Sentiment
| Date | Positive Comments | Negative Comments |
| — | — | — |
| Dec. 22 | 40% | 50% |
Source: Santiment
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.
Holiday Illiquidity and the Expected Trading Range
According to Ryan Lee, chief analyst at Bitget Research, the current downtrend is an organic symptom of holiday illiquidity:
‘Post-Christmas, market activity typically picks up again, with funds expected to actively position for sectors that might benefit from Trump’s upcoming inauguration… The expected trading range for BTC this week is $94,000 – $105,000.’
President-elect Donald Trump’s inauguration could be the next significant Bitcoin catalyst on January 20, 2025.
Conclusion
The holiday season has brought a period of illiquidity to the cryptocurrency market, characterized by low daily Bitcoin payments. However, weak social sentiment and analyst expectations suggest that an imminent price recovery may be on the horizon for the world’s largest cryptocurrency. As the market waits with bated breath for President-elect Trump’s inauguration, investors should keep a close eye on the expected trading range of $94,000 – $105,000.
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