Bitcoin payments hit yearly lows as holiday season slows market activity
Bitcoin payments fell to their lowest point of 2024
Daily confirmed Bitcoin payments fell to their lowest point of 2024 on December 26, with Blockchain.com reporting just 623,434 transactions added to the blockchain.
The drop highlights the impact of holiday season illiquidity, marking a sharp 37% decline from the December 17 peak of 857,000 payments when Bitcoin hit its all-time high of $108,000, according to the Cryptopolitan.
Bitcoin’s transaction activity often mirrors price trends. Payments spiked mid-December during a record-breaking rally but slowed as the cryptocurrency retreated to $94,000.
While Bitcoin’s price stabilized above $95,000 in recent days, the subdued transaction volume suggests market participants may be holding their assets in anticipation of further price increases.
Analysts Split on Bitcoin’s Next Move
Market experts are divided on Bitcoin’s trajectory for 2025. Elja Boom, a noted crypto analyst, highlighted fractal patterns that suggest a rebound above $100,000.
However, Aksel Kibar, a market technician, cautioned against potential downside risks, citing a developing head-and-shoulders pattern that could push Bitcoin toward $80,000 or even lower. Despite the recent pullback, some analysts point to historical precedents that favor a recovery.
Contrarian views argue that the current bearish sentiment—reflected in a 4:5 ratio of positive to negative social media comments—might signal a bullish reversal as retail pessimism typically precedes price rallies.
Kibar tempered his warning of steep declines, noting that a less severe correction to $90,000 remains plausible, aligning with Bitcoin’s broader chart patterns. “While a short-term head-and-shoulders top could develop, market responses indicate a moderate pullback rather than a sharp crash,” he stated.
As the cryptocurrency enters 2025, Bitcoin investors and analysts alike are closely monitoring price levels, with $100,000 acting as the critical threshold for a potential bullish breakout.
El Salvador's bold decision to adopt Bitcoin as legal tender has sparked global conversation about the potential of integrating digital assets into national economies. Following in its footsteps, the Czech Republic’s new tax exemption for Bitcoin holders could further encourage other nations to consider similar regulatory approaches.
