Performance of Bitcoin during Christmas and New Year holidays in the past five years, from December 20 to January 6, shows significant volatility, but the actual fluctuations, except for the particularly severe one in 2020, have remained within 10% in other years.
In 80% of the years, the price performance of the coin in the following two months has been quite good. If the buying opportunity is narrowed down to the week after New Year, the possibility of profit remains at 60%.
Observing the performance of the Nasdaq index over the past five years, there has been considerable fluctuation during the Christmas period, yet the overall ups and downs have not been significant. Thus, it can be inferred that the end of the holiday will not have a major negative impact on Bitcoin.
Despite this round of the bull market being significantly influenced by BTC ETF inflows and outflows, the Nasdaq index did not show a notable decline during or after Christmas, which had little impact on the cryptocurrency.
Andre Dragosch, Head of Research at Bitwise Europe, stated that he has been accurately optimistic about BTC for months, but after Bitcoin's 8% drop last week, he warned that Bitcoin might further decline in the coming weeks.
Andre said: "The macro situation is that the Federal Reserve is caught in a dilemma. Although it has cut rates three times since September, the financial environment continues to tighten.
Meanwhile, according to the U.S. inflation indicators from Truflation, the real-time indicators of consumer price inflation have accelerated to new highs over the past few months. Therefore, we are likely to see more pain in the coming weeks. However, considering the ongoing tailwind from BTC supply shortages, this could present a buying opportunity."
