The traditional “Christmas rally”, in which Bitcoin (BTC) often shows a strong increase at the end of the year, seems to be not happening this year. While bitcoin rose by an average of 2.8% in the 51st week of the year, the cryptocurrency recorded a decline of 11% this time.
The last week of December also offers little hope: in five of the past six years, bitcoin lost ground during week 52. This begs the question: why is the Christmas spirit lacking in the crypto market?
A disappointing end-of-year quarter
The lack of a Christmas rally fits into the broader picture of a disappointing fourth quarter (Q4) in 2024. Historically, bitcoin tends to perform strongly in Q4, with an average quarterly increase of 85% since 2013, according to Coinglass data. This year the increase remains at less than 50%, which is a disappointment for investors.
The current correction, which has seen the price fall 15% from its peak, brings back memories of early 2021, when bitcoin fell from $40,000 to $30,000 in a matter of weeks – a drop of 25%. At the time, this correction turned out to be part of a larger bull market, which led to an all-time high of $70,000 in November of that year.
Bull market remains intact
Despite the disappointing performance, there are no clear signs that the bull market is over. Key indicators, such as the short-term holder realized price (STH RP), indicate that bitcoin is still finding support at key levels.
The STH RP, which measures the average purchase price of coins moved in the last 155 days, is currently at $84,000. Historically, this level often acts as support during bull markets. As long as bitcoin remains above this level, there is a good chance that the uptrend will continue into 2025.
What does this mean for investors?
While the lack of a year-end rally and the recent share price drop may be discouraging, the bigger picture remains positive. Analysts emphasize that bitcoin’s fundamentals are strong and that tight market liquidity could be a catalyst for new price increases in the long term.
Investors are advised to remain patient and focus on the broader trend, which still points to a healthy bull market.
Conclusion
Although the Christmas spirit seems to be missing from the crypto market this year, the long-term outlook for bitcoin remains positive. The question is whether 2025 will be the year in which bitcoin reaches record highs again and sets the markets on fire again.
Claim €10 free and have a chance to win €400 in Ethereum (ETH)!
Grab this unique opportunity with Newsbit and Bitvavo! Create an account now via the button below, deposit €10 and immediately receive €10 free. But that’s not all: by trading at least €200 between December 16 and 22, you automatically have a chance to win as much as €400 in Ethereum (ETH). This promotion is valid for both new and existing customers!
Claim your €10 free for a chance to win €400 in Ethereum (ETH)
Don’t miss this opportunity to immediately benefit from the growing popularity of Crypto!
Source: https://newsbit.nl/wat-gebeurde-er-met-de-bitcoin-santa-rally/
