The Coinbase premium index, a key indicator of Bitcoin retail demand in the US, fell to its lowest level in a year as 2024 concluded, with analysts suggesting this could hinder short-term price recovery. On December 31, the index reached -0.23, coinciding with Bitcoin's decline to $91,479, its lowest since November 27. CryptoQuant's Burakkesmeci attributed this drop to increased seller pressure and a low-liquidity market at year-end. The previous instance of such low levels was in January 2024, around the time US Bitcoin ETFs launched. Analysts anticipate that unless macroeconomic conditions shift or retail/institutional interest boosts, Bitcoin’s recovery may be challenging. Observations are also focused on the upcoming inauguration of President-elect Donald Trump on January 20, which some believe could impact Bitcoin positively thereafter, despite potential price corrections. Moreover, long-term Bitcoin holders, who have kept their assets for over 155 days, are profiting significantly, raising concerns over possible sell-offs as they capitalize on gains amidst the current price environment. Short-term holders, with higher average cost-bases, see much smaller profit margins if liquidating now.

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