Number of daily confirmed bitcoin transactions has fallen to a yearly low

The decrease in the index indicates a period of illiquidity characteristic of the holidays

27.12.2024 - 14:22

3 min

What’s new? On December 26, the number of daily confirmed bitcoin payments fell to 623 434, the lowest in a year, according to Blockchain com. This drawdown is indicative of the period of illiquidity that characterizes the holidays.

Blockchain.com data

What else is known? Confirmed bitcoin payments refer to transactions that have been accepted by the blockchain's consensus mechanism and incorporated into the blockchain, making them irreversible. Metrics such as the number of confirmed payments can be used to gauge investor activity on the Bitcoin network.

On December 17, the bitcoin price surpassed the record high of $108 000, generating more than 857 000 confirmed payments, a 37% increase from December 26. At the time of writing, the asset’s exchange rate had corrected to $96 366.

On December 22, analysts at Cointelegraph reported that sentiment around bitcoin had also fallen to its lowest level in 2024, with five negative comments for every four or five positive comments on social media.

According to experts at blockchain analytics platform Santiment, such low retail investor sentiment could be a sign of an impending bitcoin breakout: “Vocal traders are now showing severe FUD, and that’s good news for contrarians who know markets move the opposite direction of retail’s expectations.”

Source: X.com

The current downtrend is an organic symptom of holiday illiquidity, according to Ryan Lee, chief analyst at Bitget Research. He explained that market activity tends to pick up again after Christmas. Funds are expected to start actively allocating to sectors that could benefit from Donald Trump’s upcoming inauguration on January 20.

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On December 25, CryptoQuant reported that bitcoin holdings on major crypto exchange Binance also fell to their lowest since the beginning of the year. Investors are probably shifting assets to non-custodial wallets in anticipation of a rate hike.

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