Christmas lull? Major cryptos down as investors appear to be taking profits

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As a seasoned crypto investor with a decade-long journey through the digital asset markets under my belt, I can’t help but feel a bit of holiday-flavored déjà vu as I watch the market dance around the $100K mark for Bitcoin. The festive period has often brought unexpected surprises to our portfolio, and the Santa Claus rally is no exception.

Even though it’s almost Christmas Eve, the cryptocurrency market doesn’t seem to be bouncing back yet. Regrettably, Bitcoin, the leading digital currency, hasn’t managed to maintain prices above $100,000.

Even though it’s close to Christmas Eve, a time when cryptocurrencies have typically surged, reached new peaks, and added to holiday cheer, investors seem unimpressed, as the prices of these digital assets continue to show little excitement.

In simpler terms, Bitcoin (BTC) hit an unprecedented peak of more than $108,000 six days back but has been unable to surpass the $100,000 threshold for the last three days. Over the past week, Bitcoin has dropped by 8.3%, currently trading at around $95,904 per coin. Similarly, other major cryptocurrencies have shown a similar lack of momentum.

Over the last seven days, Ethereum (ETH) has dropped by approximately 15.6%, with its current value standing at around $3,339. Similarly, Ripple‘s XRP token has seen a decline of about 7.8% within the same timeframe and is now being traded at roughly $2.2.

Currently, Dogecoin (DOGE), the top meme coin in terms of market value, has dropped more than 21% over the past week, now priced at approximately $0.316. Furthermore, Solana (SOL) has dipped below the $200 threshold, experiencing a 16% decline to its current price of $184.

other major cryptocurrencies’ weekly price charts are similarly tinted red, indicating a decline across the board. The overall market value is presently 14% lower than its peak of $3.9 trillion, currently at approximately $3.41 trillion as per CoinGecko data.

From the graphs, it appears that investors are opting to cash out their returns from their investments prior to Christmas Eve.

As a crypto investor, I’ve noticed a substantial dip in the market over the past week, but I can’t help feeling that there might be more surprises in store for us investors. Historically, the crypto market tends to see a post-Christmas surge, also known as the ‘Santa Claus rally.’ This seasonal rally has traditionally brought a festive sense of optimism to traders like me.

Based on data from CoinGecko, it’s been found that this specific rally usually takes place between December 27th and January 2nd in around 8 out of every 10 years, starting from 2014 up until 2023. During these instances, the total value of the cryptocurrency market has generally increased by a percentage ranging from 0.69% to 11.87%. This trend provides some optimism in light of the recent cryptocurrency market slump.

This time, the potential for a post-Christmas rally largely depends on Bitcoin’s performance. At present, Bitcoin seems to be steering the market’s course. The recent downward trend can be attributed mainly to Bitcoin falling below $100,000. If Bitcoin recovers this level in the coming days, it could revive investor confidence and pave the way for a broader market recovery.

According to a previous report from crypto.news, the MVRV-Z score for Bitcoin suggests it’s currently underpriced compared to its historical norms that typically indicate overvaluation. This means there could be potential for price increases in the near future.

Market analysts frequently remind us that corrections are a common occurrence during extended periods of Bitcoin’s growth spurts. At the moment, professionals from VanEck predict that after this recent correction, Bitcoin will resume its price exploration and could potentially reach $180,000 by Q1 2025.

At press time, Bitcoin was down 1.1% in the past 24 hours, exchanging hands at $95,870 per coin.

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2024-12-23 17:12