The hopes for a Santa Claus rally in the Bitcoin front are still alive.

Bitcoin has fallen below $92,500 this week, down 14.5% from its December peak. With the lowest levels seen since the end of November, hopes for the year-end tradition of the Santa Claus rally have diminished. This performance in the crypto markets has caught the attention of investors and market observers.

SANTA CLAUS RALLY EXPECTATIONS NOT YET MET IN CRYPTO MARKETS

The flagship of the cryptocurrency markets, Bitcoin, experienced a sharp decline this week, weakening investors' hopes for a Santa Claus rally. Bitcoin dropped to $92,442, marking its lowest level in the last four weeks. After breaking the $108,000 record on December 17, Bitcoin saw a sharp decline, falling to around $94,000 as of December 24, losing over 11% on a weekly basis.

In past years, cryptocurrency markets typically entered an upward trend during holiday periods, but they have not performed as expected in December this year. According to cryptocurrency expert Mister Crypto's analyses, significant increases were observed particularly in the period between Christmas and New Year in 2016 and 2020.

According to data from CoinGecko, there have been ten rallies after Christmas from 2014 to 2023. During these rallies, the market capitalization increased between 0.7% and 11.8%. However, this tradition was broken in 2021, when Bitcoin fell 26% from its peak level of $69,000 and continued to lose value throughout 2022.

Market experts are pointing out that the expiration of options contracts worth a total of $18 billion for Bitcoin and Ether is approaching on December 27. This situation is expected to lead to fluctuations in the markets. On the other hand, Bitcoin's social sentiment indicator dropping to its lowest level of the year on December 22 is seen as a potential sign of recovery.

These developments in the market are viewed as a significant turning point ahead of 2025, when the four-year cyclical model of cryptocurrencies will be tested.