Bitcoin transactions hit one-year low. What’s causing the low activity?

What’s going on with Bitcoin?

Metrics like the number of confirmed payments help gauge investor activity in crypto. After all, on December 17, the price of Bitcoin crossed its all-time high of $108,000, with more than 857,000 transactions confirmed in a day, up 37 percent from the end of the week.

Against this backdrop, analysts expect a quick recovery of the BTC price above $105,000 by the end of the holiday period, which is usually characterized by low institutional liquidity, that is, a weak presence of large professional players.

The relatively weak hype around the main cryptocurrency also indicates the likelihood of a quick local growth, because often a bad news background becomes a suitable condition for price jumps.

According to Cointelegraph sources , crypto sentiment hit its lowest point in 2024 on December 22, with one negative comment for every four to five positive comments about Bitcoin.

However, the low interest from retail investors could be a sign of a coming breakthrough for the Bitcoin market, according to experts at Santiment. Here is their commentary on the matter.

Traders are showing a lot of fear and uncertainty right now. This is good news for investors who know that markets are moving in the opposite direction from what most people expect.

Other experts also expect the current Bitcoin correction to end below the $100,000 mark. However, on December 20, the Bitcoin daily chart showed three red candles in a row, which happened for the first time since the first week of November. We are talking about the period that coincides with Donald Trump’s victory in the US presidential election.

Bitcoin’s current downward trend is a natural symptom of holiday low liquidity, said Ryan Lee, chief analyst at Bitget Research. Here’s his response.

After Christmas, market activity usually begins to recover, and funds are expected to be actively positioned in sectors that could benefit from the upcoming Trump inauguration. The expected trading range for BTC this week is $94-105k.

The inauguration of President-elect Donald Trump will take place on January 20, 2025, and could be the next big catalyst for Bitcoin and the cryptocurrency industry as a whole. However, the opposite effect is also possible: a sharp fall in the rate at an even faster rate, since this event has been long-awaited by all market players for several months now.

Earlier, the former head of the BitMEX crypto exchange Arthur Hayes hinted at such a prospect. According to him, residents of the United States and other countries may realize after the inauguration that Trump does not have a “magic wand.” Accordingly, it may take much longer than planned to correct the situation in the economy and create adequate regulation of digital assets. This means that the positive attitude of digital asset owners can very quickly turn negative.

Amid the New Year holidays, a real miracle can happen: one of the users of the pump.fun platform decided to give a gift to the daughter of the head of the financial startup Runway, Xiqi Chen.

This week, Chen posted a Twitter thread asking for donations to support the Hankinson Lab at the University of Colorado, the only lab in North America dedicated to researching pediatric craniopharyngiomas, a rare type of brain tumor that affects Chen’s young daughter, Mira.

Thanks to support from high-profile figures including Twitter CEO Linda Yaccarino, Chen’s GoFundMe campaign has raised more than $230,000 at the time of writing.

But what really struck Chen was a charity meme token called MIRA, created by users of the well-known platform pump.fun for launching such assets. Its market cap at its peak reached $80 million. Thanks to a user named Waddles, who bought and then transferred 50 percent of the coins to Chen shortly after the launch, his stake in the project was suddenly valued in the millions of dollars.

He then left the following comment, the contents of which are reported by The Block .

Starting in about 12 hours, I will be selling $1,000 worth of MIRA tokens every ten minutes continuously. No more, no less. If I change this schedule, I will announce it 24 hours in advance.

Chen acknowledged that some traders may have profited from the coin without planning to donate to charity, but he shrugged it off. After the tweet, MIRA’s value dropped, and the asset’s market cap reached $20 million.


The situation with Bitcoin should not raise any questions. After all, during the New Year holidays, blockchain users traditionally spend time offline, which affects the corresponding indicators of the networks. If we focus on last year, user activity will begin to grow already in January.