Cryptocurrencies are up. Why? Santa rally story accelerates
The crypto market is rebounding from last week's losses.
Price activity suggests Christmas speculators expecting a crypto 'Santa surge' are buying.
Following Ethereum ETF inflows and altcoin outperformance, investors may turn to altcoins this Christmas season.
BTC and the cryptocurrency market surged 5% on Tuesday as major assets try to recoup from last week's losses. Altcoins dominate this market upswing, showing investor confidence is fueling the 'Santa surge.'
Altcoins lead market rebound as investors fuel Santa surge
After a weeklong drop, the crypto market is rallying on Christmas Eve. Holiday traders' buy-side pressure boosted Bitcoin, Ethereum, Solana, XRP, and Dogecoin.
This suggests a 'Santa rally,' when cryptocurrencies gain in the last five trading sessions of a year and the first two of January. Tuesday's market activity suggests holiday traders believe the story.
Another factor for the price rebound may be predictions of a crypto market boom after the holidays.
The January 20 US presidential inauguration of Donald Trump may spark a major spike in crypto markets.
According to Coinglass statistics, Ethereum ETFs had $130.8 million inflows on Monday while Bitcoin ETFs saw $226.5 million exits. The big difference between these items suggests investors are focusing on cryptocurrencies this season.
This is seen by the double-digit growth of cryptocurrencies like Pudgy Penguins (PENGU), Hedera (HBAR), JasmyCoin (JASMY), Stellar (XLM), etc.
The overall stock market has also been rising, suggesting regular investors are believing the Santa rally story.
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