Opinion by: Gracy Chen, CEO of Bitget
The Santa Claus rally is a seasonal event that has historically brought positive returns during the final week of December and the first two trading days of January. Despite its unscientific origins, the rally may be a strong indicator of a green Christmas for the crypto market.
The Santa Claus rally has been attributed to tax-loss harvesting, fund managers buying high-performing stocks to enhance annual reports, or reduced trading volumes leading to less volatility. However, these explanations don’t apply directly to crypto, which has a high retail component and 24/7 trading.
Instead, the festive season brings increased consumer spending and a general sense of optimism, which can positively influence market sentiment. Furthermore, a strong bull market, such as the current one, may lead to a significant rally at the end of the year. To take advantage of the Santa Claus rally, traders can fill their conviction bags before the year-end and let the prophecy unfold.
While the global economy and potential geopolitical tensions could impact the market, barring a major macro event, there’s every reason to expect the bull market to remain intact. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice.
The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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<p>The post Crypto’s Santa Claus Rally: Why a Cryptocurrency Christmas Uptrend Is on the Cards first appeared on CoinBuzzFeed.</p>