As the final month of the year approaches, crypto-enthusiasts are buzzing with anticipation of a potential ‘Bitcoin Santa Claus rally’, reminiscent of the price boosts witnessed in 2013 and 2017.
What Happened: The term “Bitcoin Santa rally” is fast becoming a hot topic on various social media platforms. This follows a 10% increase in Bitcoin’s BTC/USD value over the past month and a 128% rise in the past year, Bitcoin.com reported. The theory suggests that akin to the stock market’s “Santa Claus Rally,” Bitcoin’s market value could experience a festive season uplift.
Proponents point to two previous occurrences. In December 2013, Bitcoin surged from under $1,000 to $1,147 per coin. The subsequent rally took place during the 2017 holiday season, with Bitcoin’s trading value soaring from $8,500 to almost $20,000.
See Also: Dogecoin To The Moon? Analyst Signals Potential Surge In DOGE Amidst $100K+ Transactions Spike
Contrarily, the 2021 holiday season saw Bitcoin’s price peak at $69,000 in November, followed by a December slump. By the end of the year, Bitcoin struggled to hold a $46,000 value, questioning the consistency of a Santa rally.
Nonetheless, the idea of a Bitcoin Santa rally continues to pique interest. Google Trends shows the search term “Bitcoin Santa rally” hitting a score of 100, the maximum possible rating, on November 20, 2023.
Despite high interest, the potential for a rally remains uncertain. Factors such as reduced trading volumes over the holiday season and speculation of a significant rally coinciding with next year’s anticipated halving event could impact the outcome.
Why It Matters: Earlier it was suggested that a potential “Santa Claus Rally” in the crypto sector might be a reality from early November to mid-December.
Cryptocurrency services firm Matrixport has suggested that Bitcoin may reach $56,000 by the end of the year, drawing parallels to its historical performance and potential future outcomes. Markus Thielen, Matrixport’s Head of Research and Strategy, pointed out a “71% chance or five in seven that Bitcoin would finish the year higher with average year-end rallies of +65%,” if Bitcoin’s value increased by at least 100% by this time of the year.
Image via Shutterstock
Engineered by Benzinga Neuro, Edited by Pooja Rajkumari
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
