#ChristmasMarketAnalysis

Well, as of December 2024, the cryptocurrency market is in deep volatility and a bearish trend affecting a lot of things such as, recent rising Treasury yields in the United States and the Federal Reserve policy announcement on December 18 which contributed to a $500 billion drop in total market capitalization. Bitcoin, which trades at less than $100,000, has fallen by 8.3% the last week, and other large cryptocurrencies such as Ethereum and XRP have also lost ground. In years past, the Christmas holiday season has been hit and miss as far as cryptocurrency's performance, soaring during bullish cycles and tanking during bearish markets.

Lower trading volumes on holiday are amplifying market volatility as Bitcoin futures are currently hovering around a critical range of $92,000 to $98,000. Bearish investor sentiment is reflected in profit-taking that has led to a wider-market decline of 14% from its all-time high.

Positive factors such as the potential for a post-Christmas rally, Trump’s crypto-friendly presidency, and Bitcoin spot ETF approvals all lend cause for optimism of a recovery. Despite several hurdles, these could undergird near-term strength for Bitcoin above $90,000.