The main reason for the decreased transactional activity is more likely tied to the negative performance of the asset on the market. Bitcoin has lost 27% of its value since last month.
At the lowest point of December, Bitcoin was trading with a 38% discount. The trend on the cryptocurrency market might not change in the foreseeable future, according to technical analysts, while long-term market conditions remain bullish.
Previously, Bitcoin dropped below the 140-day trendline that was acting as a support for the trend that began back in July.
Risk of a new pandemic
With the increasing number of lockdowns all over the world, financial risks have increased drastically, which could have affected Bitcoin’s price performance and overall market conditions.