Hopes of Crypto Santa Claus Reunion Fade as Tech Stocks Fall

In 4 out of 5 Christmas holidays dating back to 1950, US stocks have risen as investors piled some extra savings into the capital markets. But financial markets don’t get this headwind every year.

This year, the price of the Nasdaq Composite and Bitcoin rallied on Christmas Eve and Day, but a Grinch pullback in the second half of the week threatens to steal Santa’s show.

Santa Claus doesn’t show up for stocks, Crypto

The price of Bitcoin was down more than 2% over the 7-day period by lunchtime on Sunday in San Francisco. This is despite rising 0.8% during the previous daily window with markedly decreased 24-hour trading volume.

Meanwhile, Ethereum managed to pull out a 1.5% daily candle from the slow week, mostly due to some market price gains on Friday and Saturday. Santa was not completely absent, however, for BNB (with a 7D candle of 11.5%), Solana (+8%) and Toncoin (+11%).

But Fantom (FTM), Athena (ENA) and Ondo (ONDO) saw strong selling during the week after having too much eggnog in early December.

Everything from Nvidia stock to Ethereum chips cooled on Saturday from the exuberant rallies of the past 60 days in both blockchain crypto and tech stocks.

How The Grinch Stole Bitcoin’s Christmas

So why are crypto assets and stocks lacking the usual holiday spirit this year?

Ratings were already high heading into the holidays. Trump’s excellent coup since Nov. 5 sent markets soaring on hopes of a good four years for cryptocurrencies and US companies.

Additionally, there has been a sell-off of Bitcoin miners amid rising energy prices throughout the year. Bitcoin miner sales picked up pace this December in the holiday season.

The fall in tech stocks may also be dragging down the average exchange rate of major cryptocurrencies. BTC Pearson’s 30-day correlation with Nasdaq stocks has been rising since July to be in sync more than 70% of the time.

But just like baseball, in the financial markets, it’s not over until it’s over, and there are still three days left in the year to see which way the markets will move.

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