Every year, traders and investors wonder whether to expect the traditional increase in asset prices at the end of December and the beginning of January, known as the 'Santa Claus Rally'?
The 'Santa Claus Rally' is the anticipated increase in market prices associated with holiday sentiment, portfolio rebalancing, and an influx of new funds. In the U.S. stock markets, this trend usually manifests in the last 5 days of December and the first 2 days of January. However, in the world of cryptocurrencies, things are less clear-cut. For example, in 2020 and 2021, the market experienced a powerful surge, while in 2022, it faced a decline.
What to expect this year?
Forecasts for the end of 2024 remain uncertain. Several factors influence the markets: the macroeconomic situation, global news, and the sentiments of participants. Although cryptocurrencies often demonstrate sudden surges, one should not rely solely on traditions or past statistics.
How to prepare?
Stay updated on news and trends: macroeconomics and regulatory changes play a key role.
Diversify assets: don’t put all your eggs in one basket.
Manage risks: always calculate your capabilities and set loss limits.
The Santa Claus Rally is not a guarantee but merely a possibility. The best approach is to base decisions on analysis and common sense to avoid falling into the trap of false expectations.
