With festive lights twinkling across the globe, Bitcoin (BTC) is facing a less-than-celebratory Christmas.
The Bitcoin price is currently sitting at $43,161.88 after experiencing a 1.2% drop.
The recent sharp drop recently triggered a volatility alert.
This year's Christmas was a stark contrast to the usual bullish enthusiasm often expected in the crypto market during the holiday season.
Alex DovbnyaTypically, global stock markets experience the "Santa Claus" rally during the Christmas period.
The term is used to describe a trend in the stock market where there is typically an uptick in stock prices during the last week of December and the first few trading days of January. This phenomenon is often attributed to various factors such as year-end tax considerations, holiday season optimism, reduced trading activity due to the holidays, and institutional investors adjusting portfolios for year-end reporting. The Santa Claus Rally is not a guaranteed occurrence and varies in its impact each year.
Bitcoin appears to be diverging from this trend in 2023.
With that being said, a belated Christmas present might be in store for Bitcoin bulls.
Recent developments suggest a potential upswing in Bitcoin's future price, with major investment firms such as Blackrock, Ark, and Grayscale engaging in discussions with the U.S. Securities and Exchange Commission (SEC) regarding Bitcoin ETFs.
These discussions could lead to a crucial breakthrough for Bitcoin ETFs, broadening the market access and potentially invigorating Bitcoin’s appeal to a wider range of investors.
Despite the current dip, these ongoing negotiations and the likelihood of the SEC approving a spot Bitcoin ETF in the near future offer a beacon of optimism for Bitcoin's value recovery.
Arman Shirinyan
Vladislav Sopov
Dan Burgin