Bitcoin Price Surges to $100K Amid Santa Claus Rally
The Santa Claus rally has commenced in the US equity market, propelling Bitcoin (BTC) price closer to $100K. Following a 1.1% increase in the S&P 500, BTC surged to $100K, with investors anticipating a new all-time high at $110K and beyond.
This bullish momentum has sparked optimism among traders, with speculation about Bitcoin reaching $110K soon. However, blockchain analytics platform Santiment noted that crowd sentiment must moderate for Bitcoin to achieve new highs.
Photo: Santiment
The recent price increase follows MicroStrategy's announcement to issue more shares to fund additional Bitcoin purchases. Sean McNulty, director of trading at Arbelos Markets, stated:
“The announcement that MicroStrategy will issue more shares next year to buy more Bitcoin is pushing up the prices. The market is being forward looking about MicroStrategy’s Bitcoin buys and that’s been the single biggest reason for market to go up. Watching MicroStrategy news is becoming a big part of my day.”
Bitcoin Price Outlook During Santa Claus Rally
The Christmas period historically benefits Bitcoin and the broader crypto market. With the S&P 500 gaining momentum, the crypto market may follow suit.
The anticipated Santa Rally appears to be underway, as the S&P 500 is experiencing strong performance. Historically, the seven trading days starting on Christmas Eve average a +1.3% return for the index.
Photo: The Kobeissi Letter
Bitcoin maintains a strong correlation with the S&P 500, suggesting potential upward movement for BTC. Analyst Captain Faibik indicated that Bitcoin is trending upwards towards $110K.
$BTC #Bitcoin Bullish Rally incoming.. 🔜 pic.twitter.com/I2euqeB60N
— Captain Faibik 🐺 (@CryptoFaibik) December 25, 2024
Following a pullback from the previous all-time high of $108K earlier in December, Bitcoin seems ready to surpass $100K again. Ahead of the monthly options expiry, BTC experiences increased volatility, with 24-hour liquidations reaching $65 million.