#ChristmasMarketAnalysis
Is the crypto market pullback over as Christmas descends?
The Federal Reserve announced a rate cut last week and lowered the likelihood of continued interest rate cuts, resulting in a global market crash, bitcoin in just a few days from 108,000 all-time highs, once fell to 90,000 U.S. dollars near the cottage coins is a bloodbath, and some of the tokens have lost all the gains made during the bull market.
Matt Hougan, Chief Investment Officer of Bitwise Asset Management, attributed the recent pullback in the crypto market to a "natural clearing of leverage" and emphasized that "the long-term drivers are still intact, and we remain in a strong bull market."The pullback caused a massive blowout, reducing market leverage, and with Christmas coming up this week, global markets may be in a "Christmas market", which refers to the last five trading days of the year and the first two trading days of the new year.Historically, U.S. stock markets move positively during these seven days.
Bitcoin is currently heavily influenced by U.S. equities and gold, and if the stock market is doing well, it could lead to a high sentiment in the crypto markets.Bitcoin has a lot to gain in this market, but the market is still in the red.
Historically, Bitcoin has typically risen sharply during and after the Christmas season in "halved years," such as 2016 and 2020, which increases the expectation that Bitcoin will rise sharply in the near term.
