$BTC

Historical Crypto Trends During the Holidays

1. Increased Volatility

The cryptocurrency market has often experienced increased volatility during the holidays. With lower trading volume, prices were more susceptible to the influence of large investors (whales).

2. 2017-2018

In December 2017, Bitcoin reached an all-time high (~$20,000), but corrected right after the holidays.

Many altcoins, such as Ethereum and Ripple, also saw gains before the holidays, but fell in the first weeks of January 2018.

3. 2020-2021

In 2020, during the holidays, Bitcoin and Ethereum surged. Bitcoin surpassed $28,000 in December, marking the beginning of a bull market that lasted until mid-2021.

The popularity of DeFi and NFTs attracted new investors, which boosted altcoins during the New Year period.

4. Holidays and the "January effect"

After the holidays, the so-called January effect was often observed – investors return with new strategies and capital.

In some years, this led to growth in the first weeks of the new year, especially for altcoins.

5. 2023 and beyond

In 2023, the cryptocurrency market was more stable during the holiday period, although the lack of a clear uptrend or downtrend indicated a greater maturity of the market.

Key factors influencing price movement during the holidays:

Low liquidity: Many traders and institutions take a break during the holidays, which can increase volatility.

Investor sentiment: The holidays are a time of optimism, which sometimes leads to growth.

Whale Movements: Whales can use low volume to manipulate prices.

The holidays have often seen a lot of volatility in the cryptocurrency market, but whether that was a rally or a bust has depended on the market’s performance that year.