Bitcoin slipped 12% from its all-time high of $108,353, erasing gains from the second week of December. As Christmas approaches, crypto traders are considering whether the market will see a “Santa Claus” rally this year.
A report from CoinGecko states that between 2014 and 2023, crypto markets recovered around the Christmas holidays eight out of 10 times. Bitcoin’s recent price drop has dashed hopes of a Christmas rally this year, and declining institutional investment inflows have further dampened sentiment.
Will Crypto Markets See a Christmas Rally in 2024?
According to a report by CoinGecko, a “Santa Claus” rally refers to cryptocurrency price gains in the last five trading days of the year and the first two trading days of the following year. Therefore, the performance of the crypto market during the one-week period from December 27, 2024 to January 2, 2025 is crucial.
Bitcoin’s decline from its all-time high has raised concerns among BTC traders, and hopes of a Santa Claus rally have clouded this cycle. Between 2014 and 2023, crypto markets recovered after Christmas.
Crypto markets have experienced a pullback rather than a rally three times out of ten over the last decade, with a correction of up to 12.12% before Christmas, during the ICO bubble in 2017.
With BTC hovering around $97,000 on Tuesday, December 24, a pre-Christmas rally seems unlikely. BTC could rally after Christmas if there is a revival of institutional interest in the largest cryptocurrency.
Total crypto market cap, excluding Bitcoin, began recovering this week…
