The Bitcoin course, and with it the entire crypto market, has seen strong gains since the afternoon of December 23rd. This means that the BTC rate has again passed the psychologically important mark of $ 50,000 and is currently at $ 51,300 (as of 11 AM, 12/24/12). What do Christmas days have to do with the rise in market prices.
Santa Claus seemed to be stressed yesterday afternoon and he still had to buy bitcoins and other cryptocurrencies on the stock exchanges in order to be under the Christmas tree on Christmas Eve today. Assuming that Santa Claus has many savvy crypto investors and traders as helpers, this would explain why the price is increasing around 6 percent in a 24 hour period. Weekly, it is at least 7.5 percent.
Dry markets intensify Bitcoin price jump
Bitcoin fees are similar to Christmas Geese on Christmas Eve. Limited supply meets high demand, driving prices north. One crucial difference: unlike geese, which are fattened on Christmas days to ensure a sufficiently high supply, the reverse is true for Bitcoin. The markets are particularly illiquid during the holidays. This means that even less excess demand can have a relatively large impact on the price.
Considering the high pressure to sell in recent weeks, this would explain that a counter-move can play particularly well on illiquid holidays. Therefore, the current breathing in the cryptocurrency markets can be compared to the mechanisms of squeezing. The pendulum strikes north with full force if a market has been disproportionately knocked down beforehand. However, a daily 6 percent plus is not squeezed out and can be classified as normal BTC volatility.
What’s Next for Bitcoin?
Even if it is now too late for the expected year-end rally and price targets of over $ 100,000 on BTC, the holidays can bring positive surprises. Exaggerated market expectations have again weakened significantly in recent weeks. Therefore, the fear and greed index has also moved out of the greed area and has been in the pessimistic area for a few weeks.
The fact that a few weak hands have sold Bitcoin in recent weeks increases the likelihood that the price of BTC will increase in the near future. After all, these correction phases are necessary to be able to make the next jump again.
Holiday tip: eat chocolate and relax
If you are now wondering what is better to do in the current market situation, the non-binding recommendation is given that Christmas FOMO (Fear Of Missing Out) is not the best advisor. There will also be numerous attractive business opportunities next year. Perhaps the holidays should be used to not look at the crypto portfolio. According to the motto: Eat chocolate under the Christmas tree instead of writing hectic orders.
If you are still unable to leave the crypto market and are still looking for a suitable crypto exchange, our exchange comparison is recommended. Alternatively, you can also use the time to read in order to prepare for next year with crypto compass magazine. However, if you really want to gift an NFT for Christmas on the go, our current article on creating NFTs is recommended.
Bottom line: there is no excuse for boredom. Regardless of how you spend your vacation, at BTC-ECHO we wish you and your loved ones a relaxing time. Merry Christmas!
Disclaimer: The article only reflects the personal opinion of the author and should in no way be construed as investment advice.