Bitcoin has corrected by over 15% from its recent all-time high of $108K dampening hopes for a traditional Santa Claus rally this holiday season.
Following its all-time high of $108K last week, Bitcoin price BTC $92 378 24h volatility: 1.3% Market cap: $1.83 T Vol. 24h: $36.69 B has corrected more than 15% hitting a new low for December earlier today. As of press time, the Bitcoin price is trading at 1.21% down at $94,225 with a market cap of $1.86 trillion, amid the renewed selloff. This has further dampened the hopes of a Santa Claus rally this Christmas, which has historically given solid returns during the holiday period.
Earlier today, Bitcoin price touched a low of $92,403 before bouncing back briefly. During the bull market, BTC and other cryptocurrencies have performed well through the festive period. However, the disappointing BTC performance after last week’s all-time high has killed hopes of major fireworks ahead.
Crypto trader Mister Crypto highlighted Bitcoin’s historical performance, noting significant rallies between Christmas and New Year in 2016 and 2020 — both years that preceded market cycle peaks.
I'm ready for the #Bitcoin santa rally! pic.twitter.com/8mbNy8rk9Y
— Mister Crypto (@misterrcrypto) December 22, 2024
It will be interesting to see whether Bitcoin repeats this performance again. Furthermore, the recent study from CoinGecko shows that during the last decade between 2014 and 2023, BTC and the crypto market have experienced a Santa Claus rally eight out of ten times post-Christmas.
During such rallies, the crypto market cap has surged by 0.7% to 11.8% over the week spanning Dec. 27 to Jan. 2. While Bitcoin is heading lower today, altcoins are showing potential signs of a bounce back. As of press time, Ethereum and other altcoins from the top-ten list are up anywhere between 3-4%.
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Source: CoinGeckco
Altcoins Preparing for a Santa Claus Rally?
Blockchain analytics firm Santiment reported that altcoins experienced a significant breakout on Tuesday, despite Bitcoin dipping as low as $92.4K before a mild recovery. Investors who purchased speculative cryptocurrencies during the dip have seen favorable results, it added.
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Source: Santiment
Crypto analyst Captain Faibik has confirmed the breakout and retest of Bitcoin’s dominance rising wedge pattern, signaling the official start of altseason. He encourages traders to prepare for an exciting period ahead as altcoins are expected to gain momentum.
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Source: Captain Faibik
Crypto markets may experience increased volatility on December 27, as approximately $18 billion worth of Bitcoin and Ethereum (ETH) options contracts are set to expire. Additionally, Bitcoin’s social sentiment reached its lowest point of the year on December 22, potentially signaling an upcoming recovery.
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