#ChristmasMarketAnalysis
From 2014 to 2023, the cryptocurrency market has had 8 instances of the "Santa Claus Christmas Rally", where the total market capitalization of cryptocurrencies increased from 0.69% to 11.87% during the week of December 27 to January 2 of the following year. This trend was borrowed from Yale Hirsch, who is believed to have first used the term "Santa Claus Christmas Rally", which refers to the market dynamics of the last five trading days of the year and the first two trading days of the following year.
On the other hand, in the cryptocurrency market on Christmas Eve, the number of instances of the 'Christmas trade' was less than the following Christmas, it only occurred 5 times in the last 10 years. Similar to the post-Christmas trade, these pre-Christmas surges ranged from 0.15% to 11.56%.
How does the "Christmas market" manifest itself in the cryptocurrency market?
In years without a “Santa Claus Christmas Market,” the cryptocurrency market experienced its biggest correction before Christmas 2017, falling 12.12%. This decline is the result of a sharp price drop following the popularity of ICOs that year. Other than that, the cryptocurrency market’s pre-Christmas correction was modest, ranging from 0.74% to 1.25%.