The concept of “Santa Claus Rally” goes beyond conventional stock markets. In the previous years, the crypto market has observed a Santa Claus Rally up to 8 times during the post-Christmas phase and 5 times during the pre-Christmas phase. The respective rallies saw a growth range of up to 0.69%-11.87%. The historical data by CoinGecko suggests we might witness another one soon.
Crypto Data Highlights 8 Post-Christmas and 5 Pre-Christmas Santa Claus Rallies over Recent 10 Years
The historical data discloses that the Santa Claus rallies reportedly took place during the year’s 5 trading days and the next year’s 1st 2 days. On the other hand, pre-Christmas Santa Claus rallies have reportedly been taking place between the 19th to 25th of December. In comparison with the post-Christmas Santa Claus rallies, the pre-Christmas Santa Claus rallies have taken place less frequently. These rallies have occurred just 5 times, ranging between 0.15% to 11.56%.
Nonetheless, in the absence of a rally during this time, the market experienced pullbacks. The biggest pullback took place in 2017 at 12.12% after the excesses of the ICO market. The rest of the pre-Christmas dips had a range of 0.74%-1.25%. Particularly, the years 2016, 2018, as well as 2023 witnessed steady rallies during pre-Christmas and post-Christmas times.
In the year 2016, the market jumped by 11.56% amid pre-Christmas and 10.56% amid post-Christmas phases respectively. In the meantime, the previous year expressed a minor growth of 4.05% before Christmas while 3.64% after it.
During the whole month of December, the crypto sector showed relatively dramatic movements. During 5 of the previous 10 years, the cumulative market capitalization spike had a range of 16.08% to 94.19% throughout December. Contrastively, during the other years, the declines ranged between 1.73% and 15.56%. These slumps signified variability in the market statistics in comparison with the clear Santa Claus rallies.
Bitcoin’s Statistics Show 13.19% in 2016’s Pre-Christmas Rally and 10.86% in 2020’s Post-Christmas Rally
Bitcoin, the top crypto asset, reflected the wider market trends with 7 pre-Christmas rallies during the past 10 years. In 2016, it experienced a 13.19% rally before Christmas. Nevertheless, after Christmas, Bitcoin recorded 5 rallies, touching 10.86% in 2020. According to the speculators, the investment in the Santa Claus rally of Bitcoin resulted in 1.32% before and 1.29% after Christmas. This figure is significantly lower than the average return of 9.48% over the whole of December.
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