Key Points
- Bitcoin’s failure to stay above $100,000 has led to a lackluster crypto market response ahead of Christmas Eve.
- Despite the current downturn, there is potential for a post-Christmas rally, historically known as the ‘Santa Claus rally’.
Despite the approach of Christmas Eve, the crypto market is struggling, with Bitcoin unable to maintain a value above $100,000.
Historically, the holiday period has seen a surge in crypto prices, but this year investors seem less enthusiastic.
Bitcoin and Other Cryptocurrencies Struggle
Bitcoin, which recently reached an all-time high of over $108,000, has been unable to reclaim the $100K mark in recent days. It is currently trading at $95,904 per coin, an 8.3% decrease over the past week.
Other major coins, such as Ethereum, are also experiencing a downturn. Ethereum has fallen 15.6% over the past week and is currently trading at $3,339.
XRP, linked to Ripple, has seen a 7.8% decline and is now trading at $2.2. Dogecoin, the leading meme coin, has plummeted by over 21% in the past week, and Solana has fallen below the $200 mark.
Potential for a Post-Christmas Rally
Despite the current market downturn, there is potential for a post-Christmas rally, often referred to as the ‘Santa Claus rally’.
According to a report by CoinGecko, this rally has occurred 8 out of 10 times over the past decade, between Dec. 27 and Jan. 2. During these periods, the overall crypto market cap has seen gains ranging from 0.69% to 11.87%.
However, the likelihood of a post-Christmas rally largely depends on Bitcoin’s performance. If Bitcoin can reclaim the $100,000 level, it could restore investor confidence and potentially lead to a broader market rebound.
Bitcoin’s current undervaluation, as indicated by the MVRV-Z score, suggests there is room for recovery in the coming weeks.
Experts from VanEck speculate that Bitcoin will re-enter its price discovery phase following the recent correction and could reach as high as $180,000 by Q1 2025.
At the time of writing, Bitcoin was down 1.1% in the past 24 hours, trading at $95,870 per coin.