Bitcoin slipped 12% from its all-time high of $108,353, erasing gains from the second week of December. As Christmas nears, crypto traders ponder whether the market will see a “Santa Claus” rally this year.
A CoinGecko report states that eight of ten times between 2014 and 2023, crypto markets rallied around the Christmas holidays. Bitcoin’s recent price decline has quashed hopes of a Santa rally this year, and declining institutional investment inflow has dampened the sentiment further.
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Will crypto markets see a Santa rally in 2024?
A “Santa Claus” rally refers to price gains in crypto in the last five trading days of the year and the first two trading days of the following year, according to a CoinGecko report. The performance of the crypto market is, therefore, key during the one-week timeframe from December 27, 2024, to January 2, 2025.
Bitcoin’s decline from its all-time high has raised concerns among BTC traders, and hopes of a Santa Claus rally have dimmed this cycle. Between 2014 and 2023, crypto markets rallied post-Christmas.
Crypto markets experienced a pullback instead of a rally, three times out of ten in the past decade with a correction as steep as 12.12% pre-Christmas, during the ICO bubble of 2017.
As BTC hovers around $97,000 on Tuesday, December 24, a pre-Christmas rally seems unlikely. BTC could gain post-Christmas if there is a revival in institutional interest in the largest cryptocurrency.
Crypto’s total market capitalization, excluding Bitcoin, started its recovery this w
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Author: Ekta Mourya
