On Friday, Bitcoin rose beyond $51,000, mirroring the positive tone in other financial markets as investors shrugged aside Omicron worries and the holidays approached.
As we enter the last week of December, cryptocurrencies, like other risky assets, look to be on track for a Santa Rally and a high year-end performance. Bitcoin, the most popular cryptocurrency, burst past $50,000 late Thursday after two weeks of being stalled below the psychological mark. According to CoinGecko statistics, it was trading 5% higher at $51,191 at the time of latest check on Friday.
The impact of the Federal Reserve’s decision to reduce assistance for the US economy, as well as the rapid spread of the Omicron coronavirus variety, has been a source of concern for investors this month.
These concerns spilled over into the cryptocurrency market, putting downward pressure on bitcoin and other currencies.
December is known for having a cushioning impact from the eleventh month of the year. In 2018, for example, bitcoin dropped 32% in November and then 9% the following month. The same thing happened in 2019.
Another important feature of the month in question is the stability that the top currency has throughout this time. The price’s stability can be attributed to a drop in trading activity, since most traders are away for the holidays.
Based on the above remark, we may deduce that any spike at this time is likely to be temporary and will not endure as long as many people expect.