Analysis of Bitcoin's upward trend amid expectations of the 'Santa Rally'

Source: DecenterKorea Original Title: 'Santa Rally' Anticipation Drives Bitcoin Up 1% [Decenter Market Update] Original Link: https://www.decenter.kr/NewsView/2H0MNYVYQP/GZ03

The leading cryptocurrency Bitcoin is showing an upward trend amid expectations of a 'Santa Rally' as prices rise at the end of the year and the beginning of the new year.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of 8:19 AM on the 28th, Bitcoin(BTC) was trading at $91,510.43, up 1.14% from 24 hours ago. Any major exchange currency recorded an increase of 0.13% to $895.17. On the other hand, Ethereum(ETH) fell by 0.19% to $3,019.08, and Ripple traded down 0.85% at $2.20.

The domestic market showed a similar trend. On domestic cryptocurrency exchanges, BTC recorded 13,667,000 won, up 0.64% compared to the previous day. ETH is trading at 4,500,000 won, up 0.63%, and XRP is trading at 3,295 won, up 0.89%.

The slight rally of major cryptocurrencies is attributed to expectations for the 'Santa Rally.' The Santa Rally refers to the phenomenon of stock prices rising from the Christmas season until the early part of the following year.

The virtual asset specialized media CoinDesk reported that on this day, $60 million worth of short positions on Bitcoin were liquidated in anticipation of a Santa rally. A market analyst stated, “The bullish trend of Bitcoin on this day may reflect optimism in the stock market following the Thanksgiving holiday,” and analyzed, “The recent declines were aligned with the overall drop in the stock market, so the rise in Bitcoin could be a positive signal for the U.S. stock market.”

The expectation for a rate cut by the Federal Reserve ( Fed·Federal Reserve ) of the United States has increased again, which is also having an impact. Recently, John Williams, the New York Fed President, who is considered the de facto number two within the Fed, stated that “there is still room for additional adjustments to interest rates” in the short term. Following this, other Fed officials also made remarks suggesting support for a rate cut, strengthening the outlook for a rate reduction.

However, the sentiment for cryptocurrency investment remains in a state of 'extreme fear.' The Fear & Greed Index from cryptocurrency data analysis company Alternative.me is at 22 points, up 7 points from the previous day. This index indicates that the lower it is, closer to 0, the more the investment sentiment is retracted, while the closer it is to 100, the more it indicates market overheating.