Bitcoin 'Santa Claus rally' hopes dwindle as price hits

December low

Bitcoin has dropped to its lowest price since late November, dampening hopes of a "Santa Claus rally" that has historically resulted in solid gains over the holiday period in years preceding market cycle peaks.

Bitcoin BTC fell to $92,442 during late

trading on Dec. 23, its lowest price in four weeks, and a correction of 14.5% from its all-time high of just over $108,000 on Dec. 17.

It briefly rebounded to reclaim $95,000 before falling back to $94,000 during early trading on Dec. 24 and it currently remains down more than 11% over the past week.

Crypto markets have historically performed well through the festive season during bull markets, but Bitcoin's dismal December performance has quashed hopes of a so-called Santa Claus rally — a price jump during the last five trading days of December through to the first two trading days in January.

However, crypto trader 'Mister Crypto' compared Bitcoin's performance from previous years and noted that there were big rallies between Christmas and New Year in 2016 and 2020, the years preceding the market cycle peak.$BTC