The hopes of a "Santa Claus rally" for Bitcoin fade as the price hits December low
Bitcoin has fallen 14.5% from its peak reached this month as the cryptocurrency dropped below $92,500 this week.
Bitcoin fell to its lowest price since late November, which dampened hopes for a "Santa Claus rally," which historically has resulted in solid gains during the holiday period in years that preceded market cycle peaks.
Historically, cryptocurrency markets have performed well during the holiday season during bull markets, but Bitcoin's poor performance in December has dashed hopes for a so-called Santa Claus rally: a price jump during the last five trading days of December into the first two trading days of January.
Cryptocurrency trader Mister Crypto compared Bitcoin's performance in previous years and noted that there were significant rebounds between Christmas and New Year in 2016 and 2020, the years that preceded market cycle peaks.
