The Christmas rally, historically linked to the last five trading days of December and the first two of January, brings special liveliness to both stocks and cryptocurrencies. Let's explore its manifestation in cryptocurrencies.
The History of the Christmas Rally in the Crypto Market
Originally, the Christmas rally term applied to the U.S. stock market. However, with the growth of the crypto market, this trend has been observed here as well. LPL Financial analysts noted that over the past 20 years, the Christmas period remains one of the most profitable. Data for cryptocurrencies over the past five years confirms this trend.
Performance Analysis of Cryptocurrencies Over the Years
In 2019, Bitcoin surged by 15% during the Christmas period, reaching $7,400. In 2020, it broke through the $20,000 mark, increasing by over 40% in a short time. In 2021, despite a year-high drop, Bitcoin rebounded during the Christmas holidays, jumping from $46,000 to $52,000. The market was less active in 2022, yet individual projects showed gains. In 2023, Bitcoin again showed significant growth, reaching $34,000, with some meme coins performing exceptionally well.
Factors Influencing the Christmas Rally
The Christmas rally in cryptocurrencies is influenced by several factors. Holiday sentiment attracts funds to the market; institutional investors reevaluate assets at year-end; technical rebound opportunities emerge post-correction; and the presence of the Christmas rally is actively discussed on social media, heightening market interest.
The Christmas rally has become an important phenomenon for the crypto market. The observed activity during this period draws investor attention, offering a short breakthrough during the season. A repeat of rapid growth is expected in 2024.