Bitcoin ‘Santa Claus rally’ hopes dwindle as price hits December low
Bitcoin has fallen 14.5% from its peak high this month, dipping below $92,500 this week and reaching its lowest price since late November. The cryptocurrency hit $92,442 during late trading on Dec. 23, marking a correction from its all-time high of just over $108,000 on Dec. 17. A subsequent brief rebound saw it reach $95,000 before falling back to $94,000, showing a decline of more than 11% over the past week. Historically, Bitcoin has performed well during the festive season, which fuels hopes for a 'Santa Claus rally' — a price increase during the last days of December into early January. However, current trends suggest a stark contrast to previous years, as similar past cycles in 2016 and 2020 experienced significant price jumps. There was no Santa Claus rally following the cycle peak in 2021, leaving traders concerned about the future. Bitcoin's social sentiment reached a low point recently, which may indicate an incoming recovery, enhanced by upcoming Bitcoin and Ether options contracts expiration worth around $18 billion, potentially influencing market volatility.
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