The performance of Bitcoin during the Christmas and New Year holidays over the past five years, from December 20 to January 6, shows significant volatility in Bitcoin, but the actual rise and fall have been within 10% in all years except for the particularly severe fluctuations in 2020.
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 to one week after New Year's Day, the probability of profit is still 60%.
Looking at the performance of the Nasdaq index over the past five years, there was significant fluctuation during the Christmas period; however, the overall rise and fall were not large, suggesting that the end of the holiday will not have a major negative impact on Bitcoin.
Although this bull market has been greatly influenced by the inflow and outflow of the BTC ETF, the Nasdaq index did not show significant declines during or after the Christmas period, having little impact on crypto.
Andre Dragosch, Head of European Research at Bitwise, stated that he has accurately favored BTC for several months, but after Bitcoin's 8% drop last week, he warned that Bitcoin may further decline in the coming weeks.
Andre said: "The macro situation is that the Federal Reserve is in a dilemma; despite three consecutive rate cuts since September, the financial environment continues to tighten.
At the same time, according to the US inflation indicator by truflation, the real-time consumer price inflation indicator has accelerated to a new high in recent months. Therefore, we may see more pain in the coming weeks, but considering the ongoing tailwind from BTC supply shortages, this could be a buying opportunity."
