Bitcoin fell about 5% in December and ended 2024 on a downward trajectory, despite MicroStrategy's large weekly purchases.
As investors move into 2025, historical market data shows that January could be an important month for #bitcoin and other #cryptocurrencies . According to data compiled by
Coinglass, bitcoin has historically performed very strongly in the first quarter, with its price rising an average of 3.35% in January and nearly 57% in the first quarter over the same period since 2013.
However, bitcoin is not the only currency that is ending the year on a down note: since the Federal Reserve last met in mid-December, the Nasdaq 100 Index has fallen about 5%. Bitcoin has lost about 15% of its value over the same period.
But as Fundstrat's Tom Lee recently pointed out, a weak stock market at the end of the year doesn't necessarily mean a bearish start to next year. In fact, the data suggests the opposite.
In years where the market was weak in December, January is usually a rebound month. Last week, only 18% of stocks #rose on the New York Stock Exchange, the lowest three-day gain in 65 years. As Lee notes, the 12 stocks with the worst market breadth since 1962 ended the year returning an average of about 5% of their gains after January's performance, a 75% gain.
In this case, weakness through the end of 2024 could mean strength for stocks and, by extension, bitcoin in the new year. It could mean that.
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