Cryptocurrency rally ends in 2024, with trading volume down 64%

Last week, the cryptocurrency market witnessed massive volatility, as traders followed Michael Saylor’s advice to take a break.

The scale observed by Santiment, suggests The 2024 cryptocurrency rally is over. According to the data, trading volume fell by 64% to a seven-week low compared to the previous week, which saw Bitcoin reach an all-time high.

This sharp decline, especially in speculative altcoins, is consistent with seasonal patterns, as year-end holidays and financial planning often reduce market activity.

Despite this, whale activity remains a key factor to monitor. Its strong accumulation trend suggests the possibility of a surprise injection before the end of the year, especially with retail traders largely withdrawing.

This dynamic underscores the influence of large investors in shaping short-term market movements.

Santa has left cryptocurrencies

Earlier, Michael Saylor of MicroStrategy urge Community to take a break during the holiday season.

As Bitcoin enters a consolidation phase with lower volatility, it appears to be defying expectations of the traditional “Santa gathering.”

XRP and DOGE, like many altcoins, continue to show a strong correlation with Bitcoin, which may serve as a limiting factor to their growth.

On December 19, the cryptocurrency market He was injured Through massive liquidations, which took nearly $800 million from traders’ positions. Nearly 84% of them came from long positions.

Despite continued whale accumulation and other positive fundamentals surrounding these assets, the lack of bullish momentum from Bitcoin could prolong drawdowns for both currencies.

This highlights the interconnected nature of the cryptocurrency market, with Bitcoin’s movements often setting the tone for broader trends.