Bitcoin $93,746.2broke the record by reaching a new peak of US$108,268 on December 18. However, when the expected New Year’s rally did not occur, Bitcoin lost 14% of its value. In recent weeks, the trading volume of Bitcoin and other major cryptocurrencies has decreased significantly. Last week saw a 64% drop in transaction volume compared to the period when Bitcoin reached its record high. This caused the market to enter lower volatility.
Trading Volume and Whale Accumulation
According to analysts, significant price movements are expected in Bitcoin and other cryptocurrencies, driven by low transaction volume and whale accumulations. Swissblock and Santiment analysts state that there may be a potential rally for the end of the year.
If big investors, the whales, continue to buy, a market-wide recovery could be seen. Additionally, periods of low volume can make Bitcoin appear passive, which can increase market activity.
Market Expectations and Year-End Forecasts
Analysts predict that Bitcoin’s price momentum is still bullish and could recover by the end of the year. Experts say that the current trading range is between $90,000 and $100,000 and expect a breakout for the direction of the market to become clear. Santiment analysts also state that the low transaction volume in the cryptocurrency market will continue by the end of the year and this will pave the way for whale accumulations. These accumulations can create a surprise price increase for the market.
The year-end activity in the cryptocurrency market continues to be shaped in line with the strategies and market dynamics of major investors. Investors are waiting for a potential breakout in low volume but uncertain market conditions.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
