Coinspeaker
24 December 2024
3 0

Bitcoin Price Drops Over 15% to December Low of $92,403

After reaching an all-time high of $108K last week, Bitcoin price has dropped over 15%, hitting a December low of $92,403 earlier today. Currently, Bitcoin is trading down 1.21% at $94,225, with a market cap of $1.86 trillion. This decline raises concerns about the possibility of a Santa Claus rally during the holiday season, which typically yields strong returns.

Historically, Bitcoin has shown significant rallies between Christmas and New Year in years preceding market peaks, as noted by crypto trader Mister Crypto.

A study from CoinGecko indicates that Bitcoin and the broader crypto market experienced a Santa Claus rally eight out of ten times from 2014 to 2023. During these periods, the crypto market cap increased by 0.7% to 11.8% from December 27 to January 2. While Bitcoin is currently declining, altcoins like Ethereum are showing gains of 3-4%.

Source: CoinGecko

Altcoins Preparing for a Santa Claus Rally?

Santiment reported that altcoins broke out significantly on Tuesday, despite Bitcoin's dip. Investors who bought speculative cryptocurrencies during this downturn have seen positive results.

Source: Santiment

Crypto analyst Captain Faibik confirmed the breakout and retest of Bitcoin’s dominance rising wedge pattern, suggesting the start of an altseason. Traders are advised to prepare for potential momentum in altcoins.

Source: Captain Faibik

Increased volatility may occur on December 27, with approximately $18 billion worth of Bitcoin and Ethereum options contracts expiring. Additionally, Bitcoin’s social sentiment hit its lowest level of the year on December 22, which may indicate an upcoming recovery.