The “Santa Rally” appears to have hit a bumpy ride this year, with bitcoin hitting its December 2024 lowest price of $92,442. The unexpected drop surprised investors, calling into question historical trends of rising prices during the holiday season.
Bitcoin disappoints at the end of 2024
Bitcoin, often dubbed digital gold, has recently disappointed expectations of a “Santa rally,” a phenomenon where prices typically rise during the holiday season. In December 2024, bitcoin reached its lowest price of the month, falling to $92,442 on December 23. This 14.5% drop from its peak of $107,600 on Dec. 17 surprised many investors who were hoping for a price rally during the final days of the year.
Historically, crypto markets have often seen solid gains during the holiday season, especially in 2016 and 2020years preceding the peaks of market cycles. However, this year, bitcoin has not followed this trend. After briefly rebounding to $95,000, it fell back to $94,000 on December 24, recording a decline of more than 11% for the week. A disappointing performance attributed to market volatility and economic uncertainties.
The “Santa Claus rally” still possible?
Despite this recent fall in bitcoin, a Santa rally remains possible. Analysts predict that BTC could reach $118,000 before 2025, providing a glimmer of hope for investors and confirming the recovery potential of the crypto market. Additionally, social sentiment around bitcoin hit its lowest point of the year on December 22, which could indicate an imminent recovery.
Although bitcoin has disappointed expectations for a year-end rally in 2024, investors remain attentive to market movements and potential recovery opportunities. Volatility continues to characterize the crypto market, and the coming days will be crucial in determining the future direction of BTC.
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