Bitcoin (BTC) price has reached its lowest level since late November, and hopes for the ‘Santa Claus Rally,’ usually observed during the year-end holidays, have diminished. On December 23, the price of Bitcoin dropped to $92,442, its lowest point in the past four weeks, indicating a 14.5% decrease from its peak price of $108,000 on December 17. The digital currency briefly returned to $95,000 but once again decreased to the $94,000 range, experiencing more than an 11% drop in a week. A digital currency trader known as ‘Mr. Crypto’ analyzed Bitcoin’s performance in past years and referred to major rallies of this digital asset during the Christmas to New Year period in 2016 and 2020, before the market peak. Based on historical data, the digital currency market usually shows an upward trend during the holiday season, but the Bitcoin price drop in December has dimmed hopes for the Santa Claus Rally. This rally refers to the increase in asset prices in the last five days of December and the first two days of January. A study from CoinGecko also shows that from 2014 to 2023, in 8 out of the past 10 years, the digital currency market witnessed a rally after Christmas, with the total market value increasing between 0.7% to 11.8% from December 27 to January 2. However, in 2021, when the market reached its peak, the Santa Claus Rally did not occur, and Bitcoin faced a 26% decline until Christmas of that year. This downward trend continued into 2022. It is expected that the crypto market will reach its current cycle peak in 2025. Amidst this, on December 27, due to the expiration of Bitcoin and Ethereum options contracts worth $18 billion, there is a possibility of severe market fluctuations. You can track the prices of all tokens and cryptocurrencies live on the Crypto Price page.
