Bitcoin’s Jolly December: Santa’s Crypto Comeback or Just Market Sleigh Ride? 🎅💸

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Bitcoin‘s Jolly December: Santa’s Crypto Comeback or Just Market Sleigh Ride? 🎅💸

Oh, what a swirling symphony of chaos and hope! Coinbase’s oh-so-ominous November has finally bowed out, leaving a cozy little Christmas cheer of “systemic leverage”-that darling metric of speculative fancy-dipping down from the dizzying heights of 10% to a modest 4-5%. Because nothing screams healthy market like a good old-fashioned clean-out of excess-like unclogging a financial sink with a blowtorch. 🔥

“Lower leverage = healthier market structure + less vulnerability to sharp drawdowns heading into year-end.” Oh, the poetic justice of reduced risk! Or so they say, while Santa chuckles from his sleigh.

December’s Whispered Promises of a Santa Rally

Ah, November-Bitcoin’s second-worst November ever-losing a hefty 17.7%, twirling into the abyss like a caffeinated squirrel. The worst was 2018, when it plummeted a grotesque 36.6%. But fear not! December has shown some promise, with Bitcoin up a humble 2.3%-a modest hop, skip, and jump away from the glory days of 47% gains in December 2020.

Just yesterday, Bitcoin soared to a three-week high of $94,500-only to retreat to the polite $92,400 in Asian trading hours, because what’s life without a little volatility to spice up the holiday spirit? The Federal Reserve’s rate cut scent was in the air, but markets, those savvy beasts, had already baked that into their stockings.

Spencer Hallarn, the ever-optimistic (and perhaps a tad punch-drunk) head of OTC at GSR, echoes Coinbase’s bittersweet tune: “I think we’ve shook out a lot of the bulls and built a solid base of skepticism.” Well, isn’t that a delightful Christmas cookie-bitter and sweet in equal measure?

“Perpetual funding rates are very low or negative, which suggests there isn’t much leverage in the system. Taken together, that setup looks pretty bullish for a Santa rally. I think EOY (End Of Year) is looking good.”

US Stocks and Bitcoin-A Holiday Flirtation?

Meanwhile, Bitcoin remains a mischievous orphan in price-mispriced against the Nasdaq and high-beta tech stocks-like a starlet waiting for her big scene. Michaël van de Poppe, ever the optimistic clairvoyant, hints that this mispricing is an opportunity waiting to be unwrapped faster than you can say “crypto Christmas miracle.”

The correlation fairy seems to have flown off, leaving Bitcoin somewhat out of sync with its high-beta pals. Yet, the synchronized dance of stocks and crypto hints at a bullish future-perhaps tickling the $110K to $115K range, just to keep the skeptics diligently busy during holiday cheer.

“In that light, in the coming few weeks, perhaps months, it’s very likely to see Bitcoin grind back upward to the levels of $110K-$115K, inversing the entire loss as the entire correction was a little dubious.”

So, dear reader, whether this Christmas season revives the crypto sleigh or merely pushes it into the sleet-only time (and maybe a Santa-led rally) will tell. Hold tight, keep your avarice in check, and enjoy the glittering show!

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2025-12-10 09:51