Bitcoin Could Be Gearing Up for a Rally as Holiday Season Celebrations Approach
- Historically, Bitcoin and crypto markets have shown significant movements around Thanksgiving, Christmas, and New Year
- Watch out for BTC futures expirations on Nov. 29
Bitcoin price continues to struggle since hitting $10,500 on Oct. 26, after a surge of 42%. The leading cryptocurrency has been on a constant decline ever since, dropping under $8,400 yesterday.
Currently, BTC/USD is trading at $8,457 with 24 hours loss of 1.81%, as per Coincodex while managing the daily trading volume of just $230 million.
But things might start turning out good for Bitcoin as the holidays approach. Historically, Bitcoin and other crypto markets have shown significant movements around Thanksgiving, Christmas, and New Year.
According to SFOX research, during the 2017 bull rally, between November 12th, 2017, and December 17th, 2017, the price to buy bitcoin increased by 218%. Then during the last week of December and the first week of January, BTC surged 40%.
The reason behind this hike is that holidays are convenient times for families to get together. This is the time for the people to discuss Bitcoin and Luddites to know about Bitcoin and how they can purchase some BTC.
These holiday-based price fluctuations are corroborated by search volume data on Google. During the 2017 Bitcoin rally, US search volume for the term “bitcoin” spiked in the days following Thanksgiving, similarly in the days immediately before Christmas and immediately after New Year’s.
This surge is driven by a spike in first-time interest in Bitcoin, people looking to gift it at Christmas, and then another bout of interest following New Year’s celebrations.
It is possible holidays to introduce a new wave of fear of missing out (FOMO) to the marketplace.
As crypto analytics company Skew reported, CME bitcoin futures volumes and long positions grew throughout last month. As we have seen Bakkt has been making record volumes steadily, hitting a daily trading volume ATH of $15 million on Nov. 9th.
An increase in futures trading volume is also interpreted to correspond with a positive turn in overall market sentiment. SFOX Multi-Factor has also turned “mildly bullish.”
But we need to watch out for BTC futures expirations on Nov. 29 as historically, this has had an impact on Bitcoin volatility and broader crypto markets.