Introduction
As Christmas approaches, the volatility of the Bitcoin market has attracted significant attention from investors. According to Ryan Lee, the chief analyst at Bitget Research, Bitcoin is currently experiencing a lack of liquidity due to the holiday season, resulting in low market liquidity and price fluctuations below $100,000. However, the analyst predicts that after the Christmas holiday, liquidity will be restored and Bitcoin is expected to break through the key price range of $105,000.
Bitcoin’s Current Market Status and Christmas Impact
During Christmas, there is typically low liquidity in the global financial markets. According to Ryan Lee’s analysis, the price of Bitcoin is currently fluctuating between $94,000 and $100,000 with high volatility. On the morning of December 24th, the price of Bitcoin approached the $100,000 mark, reaching $99,968, but then slightly retreated and is currently hovering around $99,084.
Although it is expected that investors will reduce their activity during the holiday season, leading to a slump in Bitcoin prices, some institutions and large investors, known as “whales,” seem to be taking advantage of the situation to accumulate Bitcoin. This may be one of the key factors supporting the current price. Lee expects that as Christmas ends, liquidity will be restored, market activity will increase, and Bitcoin prices will once again challenge the high point of $105,000.
Bitcoin’s Latest Price Trends Today
Review of Bitcoin’s Historical Performance and Price Growth
According to statistics from Watcher.Furu on the social platform X, Bitcoin’s growth journey is remarkable. By 2024, the price of Bitcoin had reached 392,880 times the price in 2010, demonstrating significant growth potential. In Bitcoin’s history, especially during the Christmas period, price performance can be volatile at times. Over the past 10 years (2014-2023), Bitcoin’s performance during Christmas has been inconsistent, but overall, it has often seen considerable increases.
For example, in 2013, the price of Bitcoin increased by over 5,000%, while negative growth occurred in 2018 and 2022. Data from the past 10 years shows that although Bitcoin’s price volatility is low during Christmas, prices tend to rise in the days following Christmas, especially after the restoration of market liquidity.
Bitcoin Market Liquidity and the Impact of ETFs
In addition to the liquidity issues brought by holidays, the current Bitcoin market also faces pressure from spot ETFs (Exchange-Traded Funds). According to CoinDesk, although the overall sentiment in the Bitcoin market is bullish, spot ETFs have experienced net outflows for four consecutive days since December 24th, with a total outflow of about 15,500 Bitcoins. The outflow of ETF funds may exert downward pressure on Bitcoin prices.
However, analysts remain optimistic about Bitcoin’s long-term prospects. Ryan Lee pointed out that once the holiday season ends and market liquidity is restored, he expects Bitcoin prices to quickly rise above $105,000. Changes in funding rates are also an important bullish signal observed by analysts. According to CoinGlass data, the funding rate of Bitcoin perpetual contracts on Binance, the world’s largest cryptocurrency exchange, is positive, indicating that the market is still dominated by bullish sentiment.
Potential Rebound and Challenges for Bitcoin in the Future
Despite the possibility of short-term corrections and fluctuations, analysts maintain an optimistic view of Bitcoin’s future trajectory. According to a report by crypto service provider Matrixport, improvements in the macroeconomy, particularly changes in US cryptocurrency regulatory policies, could drive a larger rebound for Bitcoin in 2025, potentially even surpassing the price range of $160,000.
Furthermore, expectations regarding the inauguration ceremony of former President Trump have brought positive sentiment to the market. Analysts believe that this event could push Bitcoin prices upward. Despite the pressure on the ETF market, the fundamentals of Bitcoin remain solid, especially against the backdrop of improving macroeconomic conditions, indicating that the long-term bullish sentiment still prevails.
Conclusion
Bitcoin exhibits high volatility during the Christmas period, but with the restoration of liquidity and market activity, it is expected that Bitcoin will surpass the $105,000 price level. Historical data shows that Bitcoin typically has upside potential in December, especially after the restoration of liquidity.
Despite the challenges posed by ETF fund outflows, analysts remain optimistic about Bitcoin’s long-term prospects, especially with the improvement of macroeconomic conditions potentially providing greater upward space for Bitcoin. Investors should pay attention to changes in market liquidity and the evolution of cryptocurrency regulatory policies in the coming months, as these factors will determine whether Bitcoin can break through the current price range and enter a new round of growth.
