Bitcoin (BTC) Loses $2 Trillion Market Cap

On December 26, 2024By Littum

Christmas Is Over: Bitcoin (BTC) Loses $2 Trillion in Market Cap

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It’s December 26th, the day after Christmas, and to say the least, the holiday spirit didn’t last long – especially for the cryptocurrency market. As soon as the global holiday ended, the price of BTC began to fall, falling as much as 4% during today’s trading session.

As a result, rates of the leading cryptocurrency hit $95,200, but what is more worrying is that the main figure of $2 trillion for the market value of Bitcoin was lost. This is not the first time this has happened recently, but once again signals the weakness of major digital assets in the current market environment.

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The reason may be that December is the end of the quarter, the end of the month and the end of the year. This is the time when traders and investors close their positions, say goodbye and return after the holidays.

Given that this year Bitcoin has become more correlated with traditional financial markets than ever before, primarily due to the launch of spot Bitcoin ETFs in the US, the trends typical of the S&P 500 will example, directly affect the cryptocurrency market.

In this case, it does not seem to be an advantage that Bitcoin is traded 24/7 without days off, but rather the opposite.

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Where the major cryptocurrency finds its local bottom is yet to be seen. Recently, after reaching a new all-time high of $108,353 per BTC on Binance, the price of Bitcoin fell to a high of $92,300. There is also an open gap of about $77,000 per BTC on the CME, which is not closed after the events of November, also serves as a worrying benchmark for crypto traders.