The cryptocurrency market has been going through a particularly painful decline over the past ten days and has failed to produce the long-awaited Santa Claus rally.
With the year coming to an end in just a few days, on-chain data shows that all of this could change in a rather unexpected way.
Do trading volumes mean profits?
The end of 2024 was quite spectacular, as BTC skyrocketed from under $70,000 to over $108,000 in less than two months after the US presidential election. However, on a micro scale, the asset has been struggling for the past ten days as it fell from the aforementioned all-time high to $92,000 within days and now sits at $94,000.
Furthermore, trading volumes plummeted last week, which was quite expected given the holiday season. However, that could be the driver of a price rebound, according to data from Santiment.
The analytics platform indicated that in times of low trading volumes, whales play a particularly important role if their accumulation levels continue.
In the last days of 2024, trading volume has decreased considerably across all crypto sectors. Overall, there was -64% less trading last week compared to the previous week (which included Bitcoin’s all-time high).
The downward trend in trading, particularly among speculative… pic.twitter.com/ZTGbED2rak
– Sentiment (@santimentfeed) December 27, 2024
Many large investors have been buying different assets lately, not just BTC. In fact, “speculative altcoins” are even more susceptible to price increases on such occasions, which could be beneficial for meme coins like DOGE.
On-chain data shared by Ali Martinez indicates that Dogecoin whales took advantage of the drop to acquire more larger meme coins in recent days.
The whales bought more than 90 million #Dogecoin $DOGE in the last 48 hours! pic.twitter.com/lGsMtz0iPp
– Ali (@ali_charts) December 27, 2024
Stablecoins on Binance
The other factor is the growing stock of stablecoins on the world’s largest crypto exchange. Binance has seen a massive ingestion of such assets, which are typically used to accumulate BTC or altcoins. According According to CryptoQuant, the exchange now holds $29 billion in USDT and USDC, which “underscores Binance’s critical role in providing liquidity and stability to the market during this phase of explosive growth.”
“Stablecoins like USDT and USDC are critical for traders and institutions as they serve as a bridge between fiat and crypto while enabling seamless trading during volatile periods,” the report reads. He concluded that this particular rise of the two largest stablecoins by market capitalization is a “bullish sign.”
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