Crypto Market Trends: Christmas Accumulation and 2024 Rally

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CRYPTOCURRENCY News

CRYPTOCURRENCY,TRENDS,EXCHANGE NETFLOWS

Analysis of recent crypto market trends, including the pattern of Christmas accumulation and the 2024 Santa Claus rally, along with current market indicators.

The year started with a trend of crypto investors sending their tokens to exchanges around Christmas to book profits, followed by a trend of accumulation the following week. This pattern has been observed since 2021. 2023 saw Bitcoin (BTC) and Ethereum (ETH) inflows peaking on December 22nd, followed by outflows a few days later, indicating accumulation. The prices of tokens remained sideways for BTC and saw a 10% increase for ETH leading up to the end of the year.

In 2024, a Santa Claus rally brought significant gains to cryptocurrencies, including BTC reaching $99.6k, ETH reaching $3,560, and DOGE reaching $0.342. However, the current trend shows increasing exchange netflows, suggesting potential selling pressure. Prices have already fallen by 5%-9% for BTC, ETH, and DOGE respectively. Open Interest (OI) for Dogecoin, Ethereum, and Bitcoin has also been analyzed. In 2023, OI experienced a sharp drop around Christmas before recovering quickly in January. In 2024, a significant OI drop occurred on December 17th, likely due to the market-wide decline triggered by bearish news from the Federal Reserve. The current sideways trend in OI suggests market participants remain cautious

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