The current bearish market trends have left many investors and traders wondering about the underlying causes. While there are various factors at play, two major reasons are contributing to the current market downturn: the Christmas holiday season and the strategic maneuvering of whales.
The Christmas Holiday Effect
The Christmas holiday season is traditionally a period of low trading activity. Many traders and investors take time off to celebrate the holidays, resulting in reduced market liquidity. This decrease in trading activity can lead to increased price volatility, making it challenging for investors to make informed decisions.
Whale Opportunities: A Strategic Play
The second major reason for the bearish market trend is the strategic maneuvering of whales. Whales, or large-scale investors, have been taking advantage of the profitable days during the recent bullish market. With the election of Donald Trump as President of the United States, whales saw an opportunity to cash in on their profits.
The inactive market during the Christmas holiday season presented whales with a prime opportunity to decrease the market price. By doing so, they aimed to create a buying opportunity before Trump's inauguration, allowing them to promote their profits further.
Bearish Market Trends to Continue
Given the current market dynamics, it is likely that the bearish trend will continue for a few more days. As the Christmas holiday season comes to a close, trading activity is expected to pick up, and the market may experience increased volatility.
Disclaimer
The views expressed in this article are based on personal views or opinions and should not be considered as financial advice.
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