# The Santa rally – will Christmas bring even more gifts for Bitcoin traders? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-12-14 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Is the Santa Rally Real? Understanding Bitcoin's Meta Description: Discover the truth behind the Santa rally, December share performance, and Bitcoin value trends. Get insights from easyMarkets' Senior Global Strategist. URL: https://financedigest.com/the-santa-rally-will-christmas-bring-even-more-gifts-for-bitcoin-tradershtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd141217-22-1736843149830-compressed.jpg) - **December is traditionally one of the best months of the year for shares (Stock Market Almanac)** - **2015 and 2016 both saw Bitcoin increase in value during December (easyMarkets)** - **CBOE and CME bitcoin future contracts may already have been priced in (easyMarkets)** Not unlike its name sake, there are those who believe in the Santa rally and those who don’t.  The supposed [“Santa rally”](https://www.financedigest.com/take-five-ready-for-that-santa-rally.html "Take Five: Ready for that Santa rally?") tends to occur in the last week of December, when the market can see a sudden surge in stock prices. Many have tried to explain this burst of [activity in the market](https://www.financedigest.com/the-plant-activators-market-to-witness-steadfast-growth.html "The Plant Activators Market To Witness Steadfast Growth"). Some put it down to the general cheer of the season, others [say its down to tax](https://www.financedigest.com/g20-to-back-global-corporate-tax-deal-says-french-finance-minister.html "G20 to back global corporate tax deal, says French finance minister") considerations and individuals investing their Christmas bonuses. ![James Trescothick](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd291117-5-300x300-1736843149610-compressed.jpg) James Trescothick Is the Santa rally real?  Well, [Wall Street](https://www.financedigest.com/disney-streaming-beats-wall-street-targets-earnings-miss.html "Disney streaming beats Wall Street targets, earnings miss") certainly hopes that people believe it is. However, while many traders believe it to be true, there are others who [think it’s just a myth and that it’s just another saying](https://www.financedigest.com/go-for-it-think-positive-believe-in-yourself-and-do-what-you-love-says-dawn-elliott-of-sew-confident-chorley.html "“Go for it, think positive, believe in yourself and do what you love” says Dawn Elliott of Sew Confident Chorley") in line with the infamous “Sell in May and go away. However, according [Stock Market](https://www.financedigest.com/bitcoin-falls-to-22-month-low-as-stock-markets-tumble.html "Bitcoin falls to 22-month low as stock markets tumble") Almanac, December is one of the best months of the year for shares, with the FTSE in particular rising 74% of the time in December since 1970. Of course, as any analyst worth their weight in gold (which isn’t much these days – have you seen gold prices lately?) would tell you, past performance never guarantees future results. _**“When it comes to cryptocurrencies, the question is not only whether you believe in the Santa rally, but also whether it’s something that may have come early this year for those who**_ [**trade bitcoin**](http://r20.rs6.net/tn.jsp?f=001pvqusIv2DfMYL9IxbaWcAi35lF_U1QfwDku0J5gMCXeOe6MVFAAvpWNqsjH7SCs3LtL2caSPI23zwqSo364I3ONLkxEtWuk3aLga-f1QCuw1Khvt9RWtm7m-6vgDEu7RV5Ce2SIH5XFG1D1465o602g4sFcCkBAU1ILPwuJzCIyS_JhrlYvwjZi-sHjFdGOrtoJ--5GGsw4B8eiMlgF1WXzGUMl3sTqv&c=bwLX75WiQx3lPoDM2wt0b8fcVvgRiNNZrSCU_QNSIgDnxMS1PQWrdQ==&ch=B-yoaBQFjN2VyUPQBX749BKxs3-XGL5KpKjBqoM7huWa1PpAu0nSNQ==) _**. On 1 December, Bitcoin was around $9,867 per coin. At the time of writing, it’s at an incredible $16,526, which is an increase of more than 40%. It certainly looks like Santa has [come early this year](https://www.financedigest.com/stocks-hit-two-year-lows-sterling-comes-under-fire.html "Stocks hit two-year lows, sterling comes under fire") for Bitcoin traders.”**_ **James Trescothick, Senior Global Strategist,** [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001pvqusIv2DfMYL9IxbaWcAi35lF_U1QfwDku0J5gMCXeOe6MVFAAvpekNKlb6Hub3fzSBEkL-yD8F7NjkNMy2wjAuEGOMHOZH0JLBnO_QcemPIZV-luK8shciACoEN96juBPVoADkiqFgQ09RTvzL43VrMO7F-rxX1iu_EjEKu6lYO80FOig0_g==&c=bwLX75WiQx3lPoDM2wt0b8fcVvgRiNNZrSCU_QNSIgDnxMS1PQWrdQ==&ch=B-yoaBQFjN2VyUPQBX749BKxs3-XGL5KpKjBqoM7huWa1PpAu0nSNQ==) While Bitcoin is far too young really to give any hint of a potential Santa rally effect, those looking back to [December](https://www.financedigest.com/spains-12-month-inflation-slows-down-again-in-december-to-5-8.html "Spain’s 12-month inflation slows down again in December to 5.8%") 2015 will recall that it started the month at around $360 per coin and closed the month out at $418 per coin. It did something similar last December too, opening the month at $725.40 and starting January at $955.90 per coin. On the flip side of the coin (pun intended) you could look [back at the end](https://www.financedigest.com/decision-to-end-ecb-reinvestments-takes-back-seat-to-rate-hikes-sources-say.html "Decision to end ECB reinvestments takes back seat to rate hikes, sources say") of 2013. In November of that year it went on its first impressive bull run, hitting $1,087, only for it to collapse in December to a [low of $384 before closing the month](https://www.financedigest.com/sterling-rebounds-after-hitting-16-month-low.html "Sterling rebounds after hitting 16-month low") out at $670 due to Chinese regulators’ intervention. ![Bitcoin](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/fd141217-21-300x200-1736843149690-compressed.jpg) Many are [saying this latest bull run](https://www.financedigest.com/ecb-could-slow-rate-hikes-but-bond-run-off-should-start-soon-knot-says.html "ECB could slow rate hikes, but bond run-off should start soon, Knot says") is due to the fact that both the CBOE and the CME are launching their bitcoin future contracts. CBOE went live on 10 December, with CME due to follow on 17 December. The fact that these two exchanges have accepted Bitcoin has given further evidence that legitimizing Bitcoin as an [investment could be just around](https://www.financedigest.com/ford-to-invest-around-300-million-to-build-electric-car-parts-at-uk-plant.html "Ford to invest around 0 million to build electric car parts at UK plant") the corner. _**“When both exchanges go live with their Bitcoin future contracts, it could shower the Bitcoin market with more gifts, pushing it higher to close out a record breaking year. However, could the crypto market react in the same way as the forex market sometime does and “buy the rumour and sell the fact,” essentially dropping Bitcoin when this happens? Also, how will the Bitcoin market react with the opportunity for future traders to short their**_ [**Bitcoin contracts**](http://r20.rs6.net/tn.jsp?f=001pvqusIv2DfMYL9IxbaWcAi35lF_U1QfwDku0J5gMCXeOe6MVFAAvpWNqsjH7SCs3LtL2caSPI23zwqSo364I3ONLkxEtWuk3aLga-f1QCuw1Khvt9RWtm7m-6vgDEu7RV5Ce2SIH5XFG1D1465o602g4sFcCkBAU1ILPwuJzCIyS_JhrlYvwjZi-sHjFdGOrtoJ--5GGsw4B8eiMlgF1WXzGUMl3sTqv&c=bwLX75WiQx3lPoDM2wt0b8fcVvgRiNNZrSCU_QNSIgDnxMS1PQWrdQ==&ch=B-yoaBQFjN2VyUPQBX749BKxs3-XGL5KpKjBqoM7huWa1PpAu0nSNQ==) _**on these exchanges?”**_ **James Trescothick, Senior Global Strategist,** [**easyMarkets**](http://r20.rs6.net/tn.jsp?f=001pvqusIv2DfMYL9IxbaWcAi35lF_U1QfwDku0J5gMCXeOe6MVFAAvpekNKlb6Hub3fzSBEkL-yD8F7NjkNMy2wjAuEGOMHOZH0JLBnO_QcemPIZV-luK8shciACoEN96juBPVoADkiqFgQ09RTvzL43VrMO7F-rxX1iu_EjEKu6lYO80FOig0_g==&c=bwLX75WiQx3lPoDM2wt0b8fcVvgRiNNZrSCU_QNSIgDnxMS1PQWrdQ==&ch=B-yoaBQFjN2VyUPQBX749BKxs3-XGL5KpKjBqoM7huWa1PpAu0nSNQ==) Nobody could really have predicted what has happened to Bitcoin in 2017. Only [time will tell how it will bow the year](https://www.financedigest.com/hedge-funds-set-to-end-2021-with-inflows-for-first-time-in-three-years.html "Hedge funds set to end 2021 with inflows for first time in three years") out. However, December’s [run so far is nothing short](https://www.financedigest.com/no-poop-for-you-manure-supplies-run-short-as-fertilizer-prices-soar.html "No poop for you: Manure supplies run short as fertilizer prices soar") of spectacular. It may well be that eventually this bubble will burst. The [recent rush into the market](https://www.financedigest.com/u-s-lighting-products-market-recent-strategies-trends-technology-innovation-analysis-application-by-tmr.html "U.S. Lighting Products Market: Recent Strategies, Trends, Technology Innovation, Analysis Application by TMR") has been by those looking to profit and not to use Bitcoin for what it was designed for. When the time comes to cash out, there may be issues with getting it [exchanged back to a physical currency](https://www.financedigest.com/currency-exchange-how-to-find-the-best-rates.html "Currency Exchange: How to Find the Best Rates") and maybe even with banks accepting the transfer. For now, [Bitcoin continues](https://www.financedigest.com/bitcoin-price-rises-past-50000-as-rebound-continues.html "Bitcoin price rises past ,000 as rebound continues") to enjoy its run. Let’s just hope for those [bitcoin traders](https://www.financedigest.com/cryptoverse-bitcoin-traders-like-their-options.html "Cryptoverse: Bitcoin traders like their options") out there that when it comes to the final week of December, the crypto market isn’t overly stuffed on its own in indulgence. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---