2024 Crypto Rally Ends With A Whimper As Trading Volume Falls 64%, Michael Saylor Says ‘Take A Break’

    Date:

    The 2024 crypto rally has come to an abrupt halt. Trading volumes have taken a nosedive, falling by 64% to reach seven-week lows. This downturn has occurred despite the ongoing accumulation by large investors, commonly referred to as whales.

    What Happened: The crypto market has been a roller coaster ride this past week. Traders seem to have taken the advice of Michael Saylor, opting for a holiday break, which has resulted in a drastic drop in trading volumes.

    Data from Santiment points to a particularly sharp decline in speculative altcoins. This trend is in line with the usual end-of-year patterns, where holiday festivities and financial planning often lead to a slowdown in market activity.

    Interestingly, despite the slump, whale activity remains a key factor to watch. The continued strong accumulation trend among large investors hints at the possibility of an unexpected market pump before the year ends.

    Also Read: Analyst Says This Single Factor Could Propel Bitcoin And Crypto To New Heights In 2025

    As Bitcoin BTC/USD enters a consolidation phase with reduced volatility, it defies the expected “Santa Rally.” On December 19, the crypto market experienced significant liquidations, wiping out nearly $800 million in traders’ positions, with 84% coming from long positions.

    The lack of upward momentum from Bitcoin could extend drawdowns for both coins, underlining the interconnected nature of the crypto market.

    Meanwhile, last week MicroStrategy‘s Michael Saylor asked the crypto community to take a break during the holiday season. He posted this on X.

    Why It Matters: The sudden drop in trading volumes, despite ongoing whale accumulation, raises questions about the future of the crypto market. The continued strong accumulation trend among large investors could potentially trigger an unexpected market pump.

    However, the lack of upward momentum from Bitcoin could extend drawdowns for both coins, highlighting the interconnected nature of the crypto market.

    The current market dynamics underscore the importance of monitoring whale activity and the correlation between Bitcoin and altcoins.

    Read Next

    This Analyst Says Bitcoin Could Reach $200K By End of 2025

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