Bitcoin's Santa Claus Rally Fails to Materialize, Down Over 30%
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- Market Performance Weakness: Despite traditional markets like gold and the S&P 500 hitting record highs ahead of Christmas, Bitcoin (BTC) is currently trading at $86,852.02, over 30% lower than its all-time high, indicating weakness in the crypto market.
- Historical Return Volatility: Since 2011, Bitcoin has averaged a 7.9% return during the Christmas period, but it has also seen declines of 14% and 10% in 2014 and 2021 respectively, reflecting uncertainty during this timeframe.
- Low Market Sentiment: Analysts note that while other asset classes are generally expected to experience a Santa rally, the crypto market has failed to follow suit, leading traders to adopt a pessimistic outlook, especially as some exit risky positions for tax reasons before year-end.
- Cautious Trader Expectations: Konstantin Vasilenko, co-founder of Paybis, expressed that he does not anticipate any Santa rally, suggesting that the low market sentiment will persist into next year, further exacerbating investor disappointment.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
