U.Today – It is Dec. 26, the day after Christmas, and to put it mildly, the holiday spirit did not last long — for the cryptocurrency market in particular. As soon as the global holiday came to an end, the price of BTC began to fall, dropping as much as 4% during today’s trading session.
As a result, quotes of the leading cryptocurrency hit $95,200, but what is more worrying is that the major figure of $2 trillion for the market capitalization of Bitcoin was lost. This is not the first time this has happened recently, but once again, it signals the weakness of major digital assets in the current market environment.
The reason may be that December is the end of the quarter, the end of the month and the end of the year. This is the time when traders and investors close their positions, say goodbye and return after the holidays.
Considering the fact that, this year, Bitcoin has become more correlated with traditional financial markets than ever before, first of all due to the launch of spot Bitcoin ETFs in the U.S., the tendencies typical for the S&P 500, for example, will directly affect the cryptocurrency market.
In this case, the fact that Bitcoin is traded 24/7 with no days off does not seem to be an advantage, but rather the opposite.
Where the major cryptocurrency will find its local bottom remains to be seen. Recently, after reaching a new all-time high of $108,353 per BTC on Binance, the price of Bitcoin fell to a maximum of $92,300. There is also an open gap around $77,000 per BTC on the CME that has not closed after the events of November, which also serves as a worrying benchmark for crypto traders.
This article was originally published on U.Today
