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.
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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.
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