Bullish December Rally Possible Despite Bitcoin’s Year-End Price Predictions
I am once again asking: Could we see a Santa Rally?
Kaiko analysts suggest there's potential for a rally, though they do not anticipate bitcoin reaching $120,000 by year-end. The options data indicates a bullish December finale with significantly more calls than puts.
Analysts believe any rally may be widespread, benefiting various coins. They note that since the election, smaller layer-1 coins have been outperforming BTC and ETH as traders adjust to regulatory changes in the US.
The timing of a potential Santa Rally may differ from traditional expectations, which typically occur in the last five days of the year into the first two days of the new year. Analysts remain optimistic about crypto's performance in early next year. In this week’s Empire podcast, Daniel Matuszewski of CMS Holdings and Roshun Patel from Hack both expressed a bullish outlook.
Patel anticipates significant ETF inflows in January but warns that seasonality may impact the market as summer approaches. He suggested reevaluating portfolio allocations around March or May, noting that the current market appears healthy.
Matuszewski indicated that altcoins could follow a similar market cycle as seen previously, while expecting "crazy swings" from memecoins and AI chatbot tokens. He acknowledged volatility as a characteristic feature of these assets.