Christmas Stocks and Crypto Trends

In 4 out of every 5 Christmas holidays since 1950, US stocks have surged as investors invest extra savings into capital markets. However, this year has been different.

The Nasdaq Composite and Bitcoin rallied on Christmas Eve and Christmas Day, but a pullback later in the week threatens the Santa rally.

Santa Claus No Show For Stocks, Crypto

As of Sunday in San Francisco, Bitcoin’s price was down over 2% for the week, even though it saw a slight 0.8% daily increase amidst declining trade volume. Ethereum, however, gained 1.5% mostly due to price increases on Friday and Saturday.

Some cryptocurrencies like BNB (11.5% increase), Solana (8%), and Toncoin (11%) saw gains, while others like Fantom (FTM), Ethena (ENA), and Ondo (ONDO) experienced selloffs after earlier December rallies.

How The Grinch Stole Bitcoin’s Christmas

So why aren’t crypto assets and equities reflecting the usual holiday spirit? Valuations were high going into the holidays, and the ‘Trump bump’ since Nov. 5 had fueled exuberance. Meanwhile, Bitcoin miner selloffs have accelerated due to rising energy costs.

Tech stock slumps may also be affecting major cryptocurrencies, with Bitcoin’s correlation to Nasdaq stocks rising to over 70% since July.

Nonetheless, it’s not over yet; three days remain in the year for markets to shift further.