Crypto Santa Claus Rally Hopes Fade as Tech Stocks Plunge

In 4 out of every 5 Christmas holidays since 1950, US stocks have soared as investors piled up some extra savings in the capital markets. But financial markets don’t get this tailwind every year.

This year, the price of the Nasdaq Composite and Bitcoin rose on Christmas Eve and Christmas Day, but a pullback in the second half of the week threatens to steal Santa’s rally.

Santa Claus is a no-show for stocks and cryptocurrencies

The price of Bitcoin was down more than 2% over the 7-day period as of Sunday lunchtime in San Francisco. This despite being up 0.8% over the elapsed daily period with noticeably declining 24-hour trading volume.

Meanwhile, Ethereum managed to pull off a 1.5% daily candle from the slow week, mainly thanks to some market price gains on Friday and Saturday. However, Santa was not completely absent for BNB (with a 7D candle of 11.5%), Solana (+8%) and Toncoin (+11%).

But Fantom (FTM), Ethena (ENA), and Ondo (ONDO) saw strong selling during the week after consuming too much eggnog in early December.

Everything from Nvidia stock to Ethereum tokens was cooling on Saturday following the last 60 days’ exuberant rallies in both blockchain cryptocurrencies and tech stocks.

How the Grinch Stole Bitcoin’s Christmas

So why aren’t crypto assets and stocks in the usual Christmas spirit this year?

Ratings were already high before the holidays. Trump’s exuberant push since Nov. 5 sent markets soaring on hopes of four good years ahead for cryptocurrencies and American businesses.

Besides, there has been a sell-off of Bitcoin miners in the midst of the increase Energy prices all year round. Bitcoin miners’ sales accelerated in December during the holiday season.

The drop in tech stocks may also be dragging down the average exchange rate of major cryptocurrencies. BTC Pearson’s 30-day correlation with Nasdaq stocks has increased since July to be in sync more than 70% of the time.

But like baseball, in financial markets, it’s not over until it’s over, and there are still three days left in the year to see where the markets move next.