Santa Rally for Bitcoin Price This December? 5 Big BTC Supports | BinanX News

Is this December a good time to buy Bitcoin?

Some say there is no gift like the present, especially during the end-of-year holiday season. Because that’s when stocks and cryptocurrencies historically generate most of their positive annual returns.

“A Santa Claus rally is the sustained rise in the stock market that occurs around the Christmas holiday on December 25,” an entry in Investopedia last year. information. “Most estimate these demonstrations to occur in the week leading up to the Christmas holidays, while others see trends beginning on Christmas Day through January 2.”

But it’s not just the seasonal surge occurring in the Bitcoin and cryptocurrency markets this month. There are also broad macroeconomic trends in favor of the little orange coin. Meanwhile, there are fundamentals to BTC supply on-chain and on exchanges.

To top it all off, Trump’s surge for most stocks and crypto assets after his historic election victory is very real. Given his pro-crypto growth agenda, markets expect that to weigh heavily in Bitcoin’s favor as his administration prepares.

Here are five reasons why Bitcoin bulls expect the BTC price to rise even further during December and into the New Year.

1. The Federal Reserve expects to cut rates again in December

Cryptocurrencies like Bitcoin typically rally over the long term during the Federal Reserve’s low interest rate regimes, in addition to corporate sales and stocks. With rates staying near 0% for years after the 2008 financial crisis, Bitcoin grew by leaps and bounds from nothing to $20,000 per BTC on December 25, 2017.

Then, when the Federal Reserve high rates During 2018, the price of Bitcoin collapsed in what the markets called the “crypto winter.”

After that, the Federal Reserve cut rates back to zero in response to the global coronavirus pandemic in 2020. That led to new all-time high prices for BTC and many altcoins. The central bank then raised interest rates again in early 2022.

Now that the Federal Reserve has cut rates again, Bitcoin has roared with bullish approval. The price is breaking new all-time highs in December and shows no signs of slowing down. Daily trading volume has increased in step with higher prices.

A senior Federal Reserve official said in In early December the Federal Reserve is set to cut rates again at its December meeting. in it 17 and 18. “I am currently inclined to support a policy rate cut at our December meeting,” said Christopher Waller, a key Federal Reserve official.

2. Bitcoin supply cycle is in full swing

#Bitcoin Chronology of the cycles. I don’t make the rules.

2016-2020
Halve to peak: 525 days
From peak to bottom: 364 days
Fund to halve 518 days

2020-2024
Halving to peak: 532 days
From peak to bottom: 371 days
From bottom to halving: 532 days

The next halving date is March 26, 2028. Watch how… pic.twitter.com/0305klH4WQ

—Brett (@brett_eth) December 7, 2024

The Fed’s dovish rate regime is bullish for Bitcoin, but the supply cycle also greatly favors BTC bulls. Encoded in Bitcoin Core, the application for running Bitcoin, there is a 50% cut in new daily supplies every four years.

That’s similar to the Federal Reserve raising its rates every four years, which would strengthen the purchasing power of each dollar over time. Instead, the Federal Reserve lowers its rates to weaken each dollar so that consumers and businesses spend faster and make up the difference with economic growth.

However, Bitcoin is designed to increase the purchasing power of its holders in the long term. Instead of increasing its new supplies and decreasing its purchasing power, BTC reduces the new supply rate to shore up and consolidate its purchasing power.

3. November Explosion in Crypto Exchange BTC Outflows

While daily new Bitcoin supplies fell by half earlier this year, the availability of BTC tokens for trading on crypto exchanges has also decreased sharply. That drop in exchange liquidity is a strong support for the price of Bitcoin in the long term.

Cryptocurrency exchange outflows in 30 days exceeded 58,440 BTC (worth $5.58 billion at the time) on Tuesday, December 3. according CoinGlass data. By December 7, just four days later, that 30-day figure had increased by an extreme amount to 116,259 BTC.

That represents the conviction among long-term holders and the intention to save rather than withdraw their Bitcoins.

4. The increase in EOY sales

Most companies exceed their annual revenue quotas only in the final calendar stretch between November 1 and New Year’s Eve. The New York stock market is no different and neither is it The Web3 Bitcoin blockchain.

According In an article from Nasdaq, a popular website for stock market traders, “Historically, the fourth quarter is Bitcoin’s strongest quarter, and November has often been a standout month. December, which has also performed well in previous bull cycles, presents a promising outlook.”

In terms of its total increase in dollar terms, the price of Bitcoin rose more in one month last November than in any month in its history. This portends a strong Santa rally if market sentiment remains unchanged into the new year.

5. Pro-Bitcoin Republicans control Washington

Donald Trump tolerated Bitcoin in his first term. In his second term, he is pushing for the government to understand and adopt regulations that favor growth and make room for greater blockchain innovation.

A December 6 segment on CNBC, a popular news outlet for the financial and investing class, highlighted the pro-crypto nomination pool for second Trump administration. As the incoming president made his choices, the price of Bitcoin on cryptocurrency exchanges hovered around an all-time high of around $100,000.

like mr trump said in In a speech at the Bitcoin Conference in Nashville, Tennessee, in July, while campaigning for the November presidential election, “Those who say Bitcoin is a threat to the dollar have the story exactly backwards.”