Traders Hope For A “Santa Rally” After Bitcoin Reclaims $50,000

Bitcoin, also known as the bellwether cryptocurrency, reached the intraday peak of $51,386 around 7:49 p.m. on the Bitstamp exchange. It’s up more than five per cent over the day.

The cryptocurrency king has been at its highest since December. 7, regaining the equivalent of 22% over its previous low of $42,000.

Nearly all of the 100 biggest cryptocurrencies have a positive outlook, including SushiSwap (SUSHI) dominating the market’s recovery by 23.74 per cent and the sector of finance that is decentralized surpassing the rest of the market. The Aave (AAVE), Compound (COMP) and Uniswap (UNI) have all posted double-digit gains too.

Santa Rally

Bitcoin traders hope that a “Santa Claus rally,” an important calendar effect, will increase the Bitcoin price at the end of the year.

The term was invented in the hands of U.S. stock market traders in 1972’s Stock Trader’s Almanac. In the last two decades, the S&P 500 has had 77% wins over a nine-day trading period, including the closing session of trading for the year and two sessions of trading in January.

The past has shown that Bitcoin is not as successful as its counterpart in the U.S. stock market during the 9-day time frame and that’s why the likelihood of the possibility of a Santa rise is lower in the case of stocks than Bitcoin. If the top cryptocurrency keeps its impressive recovery and gains momentum, this year could turn out to be an exception.

As published by U.Today, Mike Novogratz said that Mike Novogratz doesn’t believe Bitcoin to rise during the initial quarter of 2022 because of an edgy sentiment in the market for stocks.

Bitcoin will need to increase another 11% to close December in green during the next seven days.

Read Also: Jack Dorsey Believes Bitcoin Will Ultimately Replace The Dollar

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