Hopeful Bitcoin Enthusiasts Anticipate a ‘Santa Claus Rally’ Echoing Past Holiday Season Surge The term
“Santa rally” is gaining popularity on social media platforms lBitcoin ike X, following BTC’s impressive surge of
over 10% in the past month and a 128% rise in the past year. This concept, mirroring the stock market’s historic
“Santa Claus Rally” where equities typically see a boost between Thanksgiving
and Christmas, suggests a similar trend in bitcoin’s market value. Proponents cite two instances to support this theory.
On November 6, 2023, interest in this term soared to 92 out of 100 on Google Trends, then abruptly dropped to zero before
climbing back to 80 just two days later. The search term again plummeted
to zero, until November 17, when it recorded
a score of 60. Yet,
on November 20, the query peaked
at a score of 100, the highest possible rating according to Google Trends.
Although there’s heightened interest, the likelihood of a rally might be more tenuous in the coming month. For example, December often sees diminished trading volumes, as traders shift their focus to holiday celebrations and family time. This pattern, well-known to market bears,
was notably exploited in 2021. Additionally dampening prospects for a
Santa rally is the growing speculation that any significant rally may not materialize until next year, potentially aligning with the anticipated halving event. Typically, January emerges as a recovery month in trading circles, as the influence of year-end tax considerations tends to wane with the onset of the new year.
