Bitcoin price hits a December low, putting a damper on investor optimism for a year-end ‘Santa Claus rally’ recovery.
BTC has plunged 14.5% from its record high this month, with the cryptocurrency trading below $92,500 this week.
Bitcoin’s fell to its lowest level since late November, disappointing expectations of a “Santa Claus rally.” Which has typically resulted in substantial gains over the holiday season in years preceding market cycle peaks. Bitcoin (BTC) dropped to $92,442 during late trading on December 23, its lowest price in four weeks and a 14.5% decline from its all-time high of over $108,000 on December 17.
It briefly recovered to recapture $95,000 before slipping back to $94,000 during early trade on December 24 and is now down more than 11% over. The previous week. Bitcoin’s poor December performance has dashed hopes for a Santa Claus surge. Which typically occurs during bull markets from the last five trading days of December to the first two of January.
Crypto trader Mister Crypto compared Bitcoin’s performance to past years, noting that there were significant rallies between Christmas and New Year’s in 2016 and 2020. Respectively, which anticipated market cycle peaks.
According to a CoinGecko analysis released on December 13. Crypto markets saw a Santa Claus rally eight out of ten times from 2014 to 2023, with total crypto market capitalization increasing by 0.7% to 11.8% over a one-week period from December 27 to January 2.
There was no Santa Claus rally after the cycle peak in 2021. As BTC had declined around 26% from its high of $69,000 by Christmas Day and continued to slump throughout 2022. The peak year for this cycle is predicted to be 2025, following a four-year pattern since Bitcoin’s introduction. The last peak year was 2021.
On December 27, around $18 billion in Bitcoin and Ether (ETH$3,390.46) option contracts expire, potentially leading to market turbulence. Bitcoin’s social sentiment reached its lowest point this year on December 22, indicating a potential comeback.
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