Recently, the volatility in the Bitcoin market has attracted widespread attention. With the Christmas holiday approaching, Bitcoin’s price has experienced a short-term pullback. Earlier, as Bitcoin surpassed the $100k mark, market expectations for a Bitcoin bull market grew stronger. However, the recent price decline has led many investors to worry about whether this signals the end of the Bitcoin bull market.
Looking at the current market trend, Bitcoin’s price has fallen back to around $93k. While the decline is not overly sharp, it has sparked considerable discussion about whether the market will continue to move lower. Is this a short-term technical adjustment, or a deeper trend reversal? How will Bitcoin’s market unfold after Christmas? This will be the focal point of market attention.
Bitcoin Price Pullback During Christmas Holiday
During the Christmas holiday period, Bitcoin’s price experienced a noticeable pullback. Many investors shifted from an optimistic to a more cautious sentiment during the holiday. Although the pullback has led some to question whether the bull market is over, an analysis of on-chain data shows that there are still some potential support forces in the market.
According to BingX Bitcoin Price, Bitcoin has accumulated significant buying interest near the $94k and $98k levels. These large amounts of accumulated capital may suggest that institutional investors have made substantial purchases at these price points. The flow of funds from these institutional investors plays a crucial role in the market, especially in the current environment, where the $93k – $94k range has become a key support level for Bitcoin’s price.
From BingX Bitcoin Historical Data, it can be seen that Bitcoin’s price fluctuation in December 2024 ranged between 25% and 30%. The overall market, including the U.S. stock market and cryptocurrency, has experienced some pullback risks. No one can accurately predict the timing of the retracement or when it will end. Therefore, investors need to calculate the cost of their holdings and set profit-taking and stop-loss targets.
Another Perspective: Whale Fund Movements and Institutional Buying Favor Cryptocurrency
According to a report from the cryptocurrency analysis platform Santiment, on December 27, despite a general market decline, a “Great Whale” moved a significant amount of stablecoins to the Binance exchange. Santiment stated that Binance recently received seven deposits related to the FDUSD stablecoin, each valued at least $9 million. Notably, one deposit amounted to as much as $50 million. This could be a strong signal indicating that the great whale is preparing to buy cryptocurrency.
Institutional Driving Bitcoin’s Rise
Looking back at 2024, Bitcoin’s price rise has been largely driven by institutional investors. More and more institutions and publicly listed companies have entered the Bitcoin investment space this year. The mainstream narrative for cryptocurrencies in 2024 has undoubtedly been “institutional adoption.” Especially after the U.S. approved the spot Bitcoin ETF, market awareness and acceptance of Bitcoin have significantly increased.
The influx of institutional investors has driven Bitcoin’s continuous price increase. In fact, many institutions no longer view Bitcoin as a speculative asset but as a long-term holding “digital gold.” For example, MicroStrategy (MSTR) started purchasing Bitcoin in 2020 and added Bitcoin to its corporate balance sheet. Recently, this trend has expanded to more companies.
For instance, KULR Technology (KULR), a company focused on providing energy storage solutions for the aerospace and defense industries, recently announced the purchase of 217.18 Bitcoins, valued at approximately $21 million. This move further proves the increasing acceptance of Bitcoin among institutional investors, as more companies are choosing to include Bitcoin in their asset allocation. Through these funds and financial products, more retail investors can access Bitcoin, further boosting market liquidity.
Cryptocurrency Market Outlook for 2025: Mixed Sentiment
Citigroup analysts believe that, despite Bitcoin’s recent pullback, the overall market sentiment toward cryptocurrencies remains positive. Especially with continued institutional support, the cryptocurrency market is expected to experience strong growth in 2025. Citigroup analysts noted in a recent report that cryptocurrencies are likely to see a new growth cycle in 2025, driven by factors such as changes in U.S. policies, ETF fund inflows, and innovations in stablecoins.
BingX analysts believe that the 2025 economy will face significant uncertainty. With Bitcoin now being held through ETFs, its ownership has become less decentralized compared to before. ETFs also make Bitcoin more correlated with the U.S. stock market. As a result, Bitcoin’s price may follow the fluctuations of U.S. stocks rather than sticking to its previous four-year cycle.
Therefore, the market in 2025 is expected to be one of the most difficult to predict in Bitcoin’s history. With the global economy in a weak state and many potential unexpected events, investors need to be cautious, calculate their holding costs, and assess risks. Regarding the potential price movements of Bitcoin in 2025, readers are welcome to share their views in the comments section.
