Analysis: Hopes for a Bitcoin "Christmas Rally" This Year May Have Been Shattered

Cryptocurrency markets often go through cyclical changes, with Bitcoin leading the way first, followed by altcoins. Investors seek additional returns on newfound market gains, leading to capital flows to altcoins, sparking sharp rallies in a short period of time. Currently, Bitcoin is experiencing one of its worst Decembers to date, dimming the seasonal bull run period and falling 2% in the past 30 days. Hopes for a "Santa rally" - a phenomenon in which assets tend to rise during the Christmas week - may have been dashed due to profit-taking and cautious sentiment after weeks of price volatility. Some warn that Bitcoin may see further declines as the Federal Reserve hints at fewer rate cuts next year and emphasizes that it is not seeking a national Bitcoin reserve. (Coindesk)