#ChristmasMarketAnalysis ChristmasMarketAnalysis History doesn’t repeat itself, but it does rhyme.
Christmas is coming and New Year 2025 is approaching. Christmas, New Year, Trump’s inauguration, Bitcoin’s half-year reduction… With these gains, Bitcoin can expect to end its correction and return to growth.
Christmas is coming, is the crypto market correction over?
The Federal Reserve announced an interest rate cut last week and reduced the possibility of further cuts, which led to a global market crash. Bitcoin fell from its all-time high of $108,000 to around $90,000 in just a few days. Altcoins were in a bloodbath, with some tokens losing all their gains from the bull market. Matt Hougan, Chief Investment Officer at Bitwise Asset Management, attributed the recent decline in the cryptocurrency market to a “natural unwinding of leverage” and emphasized that “long-term factors remain intact and we are still in a strong bull market.”
This decline has caused a lot of liquidation and reduced market leverage. At the same time, Christmas is coming up this week and the global market could welcome a “holiday rally.” “Holiday rally” refers to the last five trading days of the year and the first two trading days of the New Year. Historically, the US stock market has a positive trend during these seven days. Bitcoin is currently heavily influenced by the trend of US stocks and gold. If the stock market does well, this could affect the sentiment in the cryptocurrency market.
Historically, Bitcoin has often risen during and after the “semi-annual” holiday season, such as in 2016 and 2020. This increases expectations that Bitcoin will rise in the short term.