2024 has been the year of firsts. Bitcoin blitz through the $100k mark, which is now its support value and year-end speculations are bullish. “Santa Claus Rally” is being discussed and many predict this could make crypto even stronger. This article reveals the top 3 predictions for Santa Claus Rally in 2024.
What is the Santa Claus Rally?
Yale Hirch, the founder of Stock Trader’s Almanac, coined the term Santa Claus Rally, explaining that the festive mood of the people pumps stock values for 7 days after Christmas. What led to this rationale is that it has been true almost 80% of the time.
But the news from the financial front wasn’t green last year (2023) and the market didn’t experience any Christmas cheers. Things can change this year though, as the world is seeing the new, crypto-friendly president for the USA and the market has started to perform well overall.
Top Predictions for Potential Santa Claus Rally
While the Santa Claus rally is a wave that lifts all ships, and by that we mean all traditional and not traditional assets. Its impact on crypto can be much more profound. The mood around the digital currency space is bullish and even beginners have started to dive into crypto.
Prediction 1 – Bitcoin May Target a New High
Bitcoin may continue to move up despite already making its mark by crossing the $100,000 threshold. New investors may arrive from the institutional front, giving BTC price the momentum it needs to reach a new high. Global adoption may also increase, as countries facing an inflation crisis, such as Argentina and Turkey, have already started to look at Bitcoin as a hedge. Add to that, President-Elect Trump’s pledge to create a National Bitcoin Reserve will also give BTC price a boost.
Overall, if BTC maintains its current momentum and experiences a parabolic price action in the last week of December 2024, it could reach $122,000 by the time it enters the new year.