As 2024 winds down, the cryptocurrency market is experiencing a significant drop in activity. Trading volume across crypto sectors has fallen 64% over the past week compared to the previous one, which saw Bitcoin reach its all-time high.

This decline, particularly among speculative altcoins, aligns with a common year-end pattern as traders shift focus to holiday celebrations and financial planning.

Despite the slowdown, some trends hint at potential bullish movements. Whales continue accumulating assets, a pattern that could spark an unexpected late-year rally while retail investors remain largely disengaged.

This cautious optimism is further supported by the Coinbase Premium Index, which surged following Donald Trump’s election win, helping Bitcoin break the $100K barrier. However, since December 7, the index has been declining, pulling Bitcoin below $94K.

Liquidity challenges and reduced holiday trading have contributed to the slump, but the broader market outlook remains promising. Bitcoin held at a loss has dropped to just 3 million BTC, significantly lower than the 3.9–6.1 million seen during last year’s corrections. This indicates a healthier and less stressed market environment, with investors showing greater resilience.

Bitcoin’s integration with EVM chains also marked a notable development this year, driven by the introduction of “Bitcoin staking,” which offers yield opportunities for BTC holders. Meanwhile, futures traders appear optimistic, with 64% of open Bitcoin futures trades on Binance betting on price increases.

On the ETF front, outflows dominated the week of December 23–27, with Bitcoin spot ETFs seeing withdrawals on three of four trading days. Notably, BlackRock’s IBIT ETF recorded its largest outflow since launch, totaling $188.7 million.

As 2024 concludes, Bitcoin’s resilience amid reduced trading activity suggests the potential for a stronger, more stable market in the year ahead.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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