#ChristmasMarketAnalysis “History doesn’t repeat itself, but it often rhymes.” As Christmas approaches and the new year 2025 looms, markets are buzzing with possibilities. With festive cheer, Bitcoin’s halving cycle, and even Trump’s inauguration on the horizon, many are wondering if Bitcoin is ready to break out of its correction phase and return to an uptrend.

A Rough December for Crypto

The past week has been a rough one for the crypto market. Following the recent Federal Reserve rate cut and signals of limited future cuts, global markets have tumbled. Bitcoin has seen a sharp decline from its all-time high of $108,000 to around $90,000, while many altcoins have suffered even steeper losses, erasing much of their bull market gains.

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, attributed the pullback to a “natural deleveraging.” Despite the decline, he noted that the long-term outlook remains positive, with the broader bull market still intact. While that may not seem to be the case right now, these corrections are often part of a healthy market cycle.

A Christmas Rally on the Horizon?

As the holiday season gets underway, investors are focusing on the potential for a “Christmas rally.” The term refers to the U.S. stock market’s tendency to post gains over the last five trading days of the year and the first two of the new year. With Bitcoin closely tied to the performance of U.S. stocks and gold, a strong rally in traditional markets could also boost sentiment in the crypto space.

Historically, Bitcoin has a history of making big moves during the holiday season — especially as its halving cycle approaches.In 2016 and 2020,