Santa Rally Could Boost Bitcoin as Year-End Approaches:

Bitcoin has experienced its toughest fourth quarter since 2022, trading at $90,124, although past Wall Street trends indicate that Bitcoin may receive some support during the final days of December. According to the Santa Claus Rally phenomenon, which refers to the S&P 500 increasing over the last five days of the year and the first two days of January every year since the 1950s, increases were seen 77% of the time. It has also never fallen three years consecutively.

The rising institutional uptake of Bitcoin through ETFs has increased its correlation with equities, such that aSanta Claus rally in the stock markets may rub off on crypto markets as well. Though BTC has experienced aSanta Claus rally in mixed form in previous years, when it grew by double digits in 2011 and 2016, while contracting in 2014 and 2021, on average, it gains 7.9% during this time.

Gold has continued performing above all other assets during the Santa seasonality, with cumulative returns of 95% since the year 2005, having reached an all-time high above $4,400.

With the S&P 500 being only 1.5% from record levels, and Bitcoin being only 30% from its record high, traders are now looking out for any potential buy signals in crypto towards the end of the year, making the final days of December particularly critical for crypto traders.

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