Bitcoin Gains 8% in December Led by Strong US Trading Activity

TLDR

Table of Contents

Bitcoin gained 8% during US trading hours so far in December
November returns in the US session were negative for Bitcoin
European and Asia-Pacific sessions saw near -4% returns this month
STH Realized Price saw sharpest weekly drop since FTX crash in 2022

Bitcoin’s trading pattern has shifted sharply this December, with the US trading session emerging as the clear leader in returns. After recording negative performance in November, American market hours have driven an 8% gain so far this month. In contrast, Europe and Asia-Pacific sessions have remained flat or negative, suggesting that US-based investors are now leading the buying momentum while others hold back or sell.

US Session Turns Positive While Other Regions Lag

Data shared by CryptoQuant analyst Maartunn shows Bitcoin’s performance has shifted since November, with the US session now showing stronger returns. In contrast to last month, where the US hours recorded negative performance, December has seen a notable 8% cumulative return during this session.

The performance gap between regions is clear. The European and Asia-Pacific sessions both showed cumulative returns around or below -4%. This change in momentum suggests that US investors have started accumulating Bitcoin more actively, while others have reduced exposure or held off on buying.

These trading sessions are based on periods when regional investors are typically most active. While Bitcoin trades 24/7, price movements often align with regional investor behavior. The recent trend suggests that US-based demand has returned, influencing short-term price movements.

November Selloff Reprices Short-Term Holders’ Cost Basis

Another trend from late November shows that short-term holders (STHs) responded sharply to Bitcoin’s price drop. According to CryptoQuant’s Frank, the STH Realized Price saw its largest seven-day decline since the FTX collapse in November 2022.

This metric measures the average price at which short-term investors acquired their coins. A sharp drop means many investors who bought at higher prices sold during the downturn, thereby adjusting the average cost basis down.

The behavior signals a wave of panic selling as prices fell in late November. This capitulation may have cleared weaker hands from the market, potentially allowing stronger accumulation to follow, especially from US investors.

Bitcoin Price Drops After Short-Term Rally

Bitcoin’s price has seen volatility recently. After some upside earlier in December, BTC fell by around 3.5% over the past day. The current price stands near $85,800, reflecting ongoing uncertainty and quick shifts in momentum.

Despite the daily drop, the overall trend for the month remains upward during the US session. The contrasting performances across regions suggest varying market sentiment and possibly different macroeconomic or policy influences driving investor behavior.

Market analysts continue to monitor trading volume and session-based returns to understand where demand is emerging. The US session’s strength this December is being watched closely as year-end trading unfolds.

Market Behavior Could Shape Year-End Trends

The sharp contrast in trading behavior across regions may influence price direction into the final weeks of the year. If US investors continue accumulating, it could support Bitcoin prices despite weaker demand in Europe and Asia-Pacific.

Historically, December can bring increased volatility and changes in sentiment as investors adjust portfolios ahead of the new year. The rise in US-session buying may also reflect confidence in upcoming macroeconomic developments or regulatory clarity.

Real-time blockchain data and on-chain indicators like the STH Realized Price will remain important tools for tracking investor response. While daily prices fluctuate, cumulative session performance offers a broader view of current market behavior.