The Bitcoin course, and with it the entire crypto market, has seen strong gains since the late afternoon on December 23rd. This means that the BTC rate is once again above the psychologically important US $ 50,000 mark and is currently at US $ 51,300 (as of 11 a.m., 12/24/12). What the Christmas days have to do with rising market prices.
Santa Claus seemed to be under stress yesterday afternoon and still had to buy some Bitcoin and other crypto currencies on the stock exchanges so that they make it under the Christmas tree in time for Christmas Eve today. Assuming that Santa Claus has many crypto-savvy investors and traders as helpers, this would explain why the price is around 6 percent up over a 24-hour period. On a weekly basis it is at least 7.5 percent.
Dried up markets intensify the Bitcoin price jump
The Bitcoin rates are similar to the Christmas geese on Christmas Eve. Limited supply meets high demand, which drives prices north. A crucial difference: In contrast to the geese, which are fattened for the Christmas days in order to ensure a sufficiently high supply, the reverse case applies with Bitcoin. The markets are particularly illiquid on the holidays. This means that even smaller excess demand can have a relatively large impact on the price.
If you consider the high pressure to sell in recent weeks, this would explain that a countermovement can develop particularly well on illiquid public holidays. Today’s breathing in the crypto markets can therefore be compared with the mechanisms of a squeeze out. The pendulum strikes north with full force if a market has been pushed to the ground disproportionately beforehand. However, a daily plus of 6 percent does not mean a squeeze out and can be classified as normal BTC volatility.
What’s next for Bitcoin?
Even if it is now too late for the hoped-for year-end rally and price targets of over 100,000 US dollars at the BTC, the holidays can provide positive surprises. The exaggerated expectations on the markets have been significantly weakened again in recent weeks. The fear-and-greed index has therefore also left the area of greed and has been in the pessimistic area for a few weeks.
The fact that a few weak hands have sold Bitcoin in the past few weeks increases the likelihood of BTC price rises in the near future. After all, these correction phases are needed in order to make the next jump again.
Tip for the holidays: eat chocolate and sit back
If you are now wondering what is best 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. In the coming year there will also be numerous attractive trading opportunities. The holidays should perhaps be used to not look at the crypto portfolio. According to the motto: Eat chocolate under the Christmas tree instead of typing in hectic orders.
If you still can’t let go of 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 the coming year with the crypto compass magazine. However, if you really want to give away an NFT for Christmas on the fly, our current article on creating NFTs is recommended.
In short: there is no excuse for boredom. However you spend your holidays, we at BTC-ECHO wish you a relaxing time for you and your loved ones. Merry Christmas!
Disclaimer: The article only reflects the personal opinion of the author and is in no way to be understood as investment advice.
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Christmas rally: Bitcoin hops over USD 50,000 mark