Bitcoin Surges During Christmas Amid Strong Buying Demand

Bitcoin made an impressive jump over Christmas, approaching the $100,000 mark. After this price increase, the cryptocurrency is only about 9% away from its all-time high of $108,000 recorded on December 17.

On Christmas last year, Bitcoin was trading at $43,000, while in 2022, its price is only around $16,000, heavily impacted by the collapse of FTX. In just one year, Bitcoin has increased by nearly 140%. Anthony Scaramucci, founder of SkyBridge Capital, believes that Bitcoin could double in value by 2025.

Despite a slight correction in the past few days, Bitcoin still has a week to finish December on a positive note. Large investors are rebalancing their portfolios after the Fed signaled interest rates in Q1 2025.

Bitcoin’s price decline over the past week coincided with large transactions from whales. On-chain data shows that the average value of Bitcoin transactions has increased dramatically during the market correction, reflecting a significant shift in investor sentiment and actions.

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According to data from IntoTheBlock, the average Bitcoin transaction size has reached $306,100, marking its highest level since November 2022.

Typically, spikes in transaction size during market corrections often reflect strong selling from whales, putting significant downward pressure on the market.

However, strong buying demand from large institutions has helped to stem the decline, allowing Bitcoin to recover. This is seen as a signal that Bitcoin’s bearish momentum may have bottomed out and is running out of steam.