Crypto markets have gotten off to a strong start this December, with Bitcoin breaking out above $40,000 and Ether blowing past $2,000! Bullish momentum is building, but is the Santa rally secured?
Since 2015, Bitcoin’s directional price movement in December has matched its November performance. With BTC closing last month green, price patterns indicate there’s room for an upward continuation.
I never realized this before...
— Zack Voell (@zackvoell) December 1, 2023
Every year since 2015, Bitcoin’s directional move in December (up or down) matched its direction from November.
Is this time different? pic.twitter.com/ITWbpX1i6N
Historical price correlations are not necessarily signals themselves, but this broader rally is driven by strong fundamentals: markets are fervently pricing in the impacts of spot ETF approval! The SEC’s approval of Ether futures ETFs in October gave the asset regulatory parity with Bitcoin and both are positioned to receive spot ETFs, but Ether continues to underperform.
Market participants want to position themselves to capitalize on narratives with the most immediate upside, and with Bitcoin’s spot ETF approval window open first, traders are rotating into it over ETH.
External capital is set to flood the crypto industry via spot ETFs this January; it only makes sense that traders will be attempting to front-run the inflows this month! Mark your calendar with the approval dates, anon 🤝
Window is officially Jan 5th to Jan 10th. Really this means that any potential approval orders are going to come on either Monday Jan 8, Tuesday Jan 9, or Wednesday Jan 10. Mark your calendars people. https://t.co/8ob8Y6pgU5
— James Seyffart (@JSeyff) December 1, 2023