Bitcoin Slides Below $93,000 Amid Lukewarm US Interest During the Holidays

Bitcoin Slides Below $93,000 Amid Lukewarm US Interest During the Holidays

Market Overview

Sunday saw a turbulent day for bitcoin prices as the leading cryptocurrency dipped to a low of $92,941 per coin. This marks a 1.42% loss for BTC over the last 24 hours, while the broader crypto market declined by 1.61%.

Key Data Insights

Price and Volume Trends

Bitcoin fell below the $93,000 mark after hovering above $95,000 at $95,529 on Saturday evening. Trading volume remained subdued during the holiday period, with $26.18 billion recorded over the past day. On the BTC/USD daily chart, technical indicators such as the relative strength index (RSI) at 43, Stochastic at 14, and the average directional index (ADX) at 26, suggest neutral market momentum.

Short-term moving averages (SMAs and EMAs spanning 10 to 50 days) indicate bearish trends, while longer-term moving averages continue to signal bullish potential. Overall, reduced trading activity and increased selling pressure during the holidays are keeping bitcoin in a consolidated range, likely extending into the new year.

Regional Market Differences

Cryptoquant data highlights regional variances in bitcoin interest. The Coinbase premium gap remains negative at $169.18, reflecting lukewarm U.S. demand. In contrast, South Korea’s “Kimchi premium”, which represents higher BTC prices on Korean exchanges, has narrowed from 3.38% on Dec. 25 to 1.3% today.

Liquidity Trends

According to Cryptoquant’s head of research, Julio Moreno, sell-side liquidity is sharply declining. The Liquidity Inventory Ratio, which stood at 41 months in October, has now fallen to just 6.6 months. This aligns with rallies observed in Q1 and Q4 of 2024, suggesting that selling pressure may ease in the near future.

Broader Crypto Market Performance

The total cryptocurrency market is valued at $3.27 trillion, down 1.61% from the previous day. Major altcoins also experienced declines:

• XRP: -3%

• BNB: -4.27%

• DOGE: -2.25%

• FARTCOIN: -15.27% (biggest loser)

• Bitget (BGB): -12.62%

• PENGU: -10.90%

On a positive note, Phala Network (PHA) emerged as the top performer with an 18.26% gain, while the embattled FTX Token (FTT) surprisingly rose by 12.77%.

Derivatives Market Impact

Sunday’s downturn resulted in $126.39 million in liquidations, with $90.64 million stemming from long positions. The derivatives market remains a key area to watch as traders navigate ongoing volatility.

Conclusion

Bitcoin’s drop below $93,000 reflects a combination of seasonal low activity, regional market dynamics, and declining liquidity. While bearish signals dominate short-term technical indicators, the broader outlook shows potential for recovery as liquidity tightens and selling pressure eases. As 2025 nears, market participants will be closely monitoring these trends for signs of a bullish rebound.