#ChristmasMarketAnalysis

History does not repeat itself, but it rhymes.

Christmas and New Year's 2025 are approaching. Christmas, New Year, the inauguration of Trump, the halving of Bitcoin... With these factors, one can expect Bitcoin to finish the adjustment and return to the upward trend again.

Christmas is approaching, has the correction in the crypto market ended?

The Federal Reserve announced a rate cut last week and reduced the likelihood of more cuts, which led to a collapse in the global market. Bitcoin fell from its all-time high of 108,000 to around 90,000 US dollars in just a few days. Altcoins were in a bloodbath, with some tokens losing all their gains during the bull market.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, attributed the recent pullback in the crypto market to a “natural unwinding of leverage” and emphasized that “the long-term drivers remain intact and we are still in a strong bull market.”

This pullback caused a large-scale liquidation and reduced market leverage. At the same time, Christmas is coming this week, and the global market may welcome a "Christmas rally." The "Christmas 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 tends to have a positive trend during these seven days. Bitcoin is currently very affected by the trend of US stocks and gold. If the stock market performs well, this may boost sentiment in the crypto market.