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Are Hopes of a ‘Santa Claus Rally’ for Bitcoin Price Over?

Bitcoin Fiyatı İçin ‘Noel Baba Rallisi’ Umutları Sona mı Erdi?
Bitcoin Fiyatı İçin ‘Noel Baba Rallisi’ Umutları Sona mı Erdi?
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Bitcoin price fell to its lowest price since late November, dampening hopes for a “Santa Claus rally” that historically results in solid gains during the holiday period in the years before market cycle peaks.

Hopes for the Bitcoin price are fading

Bitcoin hit a four-week low of $92,442 in late trading on December 23, a 14.5% correction from its all-time high of just over $108,000 on December 17. It briefly recovered to reclaim $95,000 before falling to $94,000 in early trading on December 24, and has fallen more than 11% over the past week. Crypto markets have historically performed well during the holiday season during bull markets, but Bitcoin’s dismal December performance dashed hopes of a Santa Claus rally, a price bounce from the last five trading days of December into the first two trading days of January.

Crypto trader Mister Crypto compared Bitcoin’s performance in previous years and noted that there were major rallies between Christmas and New Year in 2016 and 2020, the years before the market cycle peaks. Between 2014 and 2023, crypto markets experienced 10 post-Christmas Santa Claus rallies, with the total crypto market cap increasing between 0.7% and 11.8% in the one-week period between December 27 and January 2, according to a CoinGecko study published on December 13.

No Santa rally in 2021

There was no Santa Claus rally following the cycle peak in 2021, as BTC fell nearly 26% from its Christmas Day high of $69,000 and continued to fall throughout 2022. The difference is that 2021 is expected to be the peak year of the cycle, while 2025 is expected to be the peak year of this cycle, following the four-year pattern since Bitcoin’s inception. Crypto markets could be poised for volatility on December 27 with the launch of nearly $18 billion worth of Bitcoin and Ether. This is because options contracts expire. Bitcoin social sentiment hit its lowest point this year on December 22, which could signal an impending rebound.

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Are Hopes of a ‘Santa Claus Rally’ for Bitcoin Price Over?
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