The cryptocurrency’s seasonal pattern points to further losses for Bitcoin in December, following the sensational crash of the FTX exchange.
Spicy The largest cryptocurrency +16% in November. Historically and over the past decade, it continued to weaken in December after declines the previous month, according to data compiled by Bloomberg.
This pattern was evident in 2018, 2019 and 2021, leaving an average drop in December of nearly 11%.
If the scenario repeats itself, cryptocurrencies could lag behind equities due to growing expectations of a recovery in financial markets with the Fed aiming for small rate hikes.
Cryptocurrency markets have plummeted in the wake of the failure of Sam Bankman Fried’s FTX trading platform and sister investment house Alameda Research. It remained stable over the month, supported in part by signs that the Fed will move towards less aggressive monetary tightening.
The traditional and digital finance world is still reeling from the debacle of FTX, which at one point boasted a $32 billion valuation but whose founder Bankman Fried now claims he only has $100,000 in his bank account.
