With Christmas around the corner, investing in cryptocurrencies might be the last thing on many people’s minds, especially in a year that saw the cryptocurrency crash. But bitcoin Bitcoin / US DollarAnd the Ethereum ETH/USDAnd the Dogecoin DOGE/USD They have their own holiday story to tell over the years.
See also: How to buy Bitcoin (BTC)
Bitcoin bounce at Christmas: Benzinga analyzed Bitcoin prices between December 20 and December 31 of last year. Bitcoin surged above the $50,800 mark on Christmas Eve and has been buoyant for the period. However, the major cryptocurrency closed at $46,306.45 at the end of 2021.
Overall, 2021 was a great year for cryptocurrencies, including Bitcoin. But 2022 has been a dampening factor. In 2021, investors were riding to an all-time high of $68,789.63 in November of that year. Fast forward to the end of 2022, the major coin is down 75.6% from that level.
BTC-USD Performance in December 2021 – Courtesy of CoinMarketCap
In 2020, the trend was exactly the opposite, with bitcoin rising to $29.00.72 on the last day of that year. The coin was capped on Christmas Eve at $23,735.95.
BTC-USD Performance in December 2020 – Courtesy of CoinMarketCap
Ethereum follows its big brother: Ethereum followed the major coin in terms of price action during the 2021 holiday season. The second largest coin hit the $4,100 mark on Christmas Eve, but on the last day of trading that year closed at 3,682.63.
the Vitalik Buterin– The coin that was established was receiving a non-fungal token boom in 2021. The coin enjoyed a rally of nearly 450% during that year reaching an all-time high of $4,648.54 on November 10, 2021. During that month, decentralized finance protocols hit Ethereum has $122 billion locked in value. However, by the following month in December, things calmed down for cryptocurrencies.
ETH-USD Performance in December 2021 – Courtesy of CoinMarketCap
During the 2020 holiday season, things were never the same. ETH ended Christmas Day at $626.41 but on the last day of trading that year, it was at $737.80.
ETH-USD Performance in December 2020 – Courtesy of CoinMarketCap
Santa Loves the Good Boy: Dogecoin soared during Christmas 2021. The meme currency, known for attracting celebrity bulls such as Elon Musk And the Snoop DoggChristmas Day ended at $0.19. On the last day of trading in 2021, it fell to $0.17.
By Christmas 2021, DOGE was up a whopping 4625% boosted in part for the year by Musk’s tweets on the meme coin.
DOGE-USD Performance in December 2021 – Courtesy of CoinMarketCap
In 2020, the meme coin was seen around the $0.045 mark on both Christmas and New Years. However, DOGE crossed the 5-cent mark on December 21, just before the holiday season.
DOGE-USD Performance in December 2020 – Courtesy of CoinMarketCap
2022 was the year of Krampus: November saw bankruptcy Sam Bankman FriedCryptocurrency exchange FTX, Which led to a sharp decline in the prices of major currencies. This year has been dominated by tightening from major central banks around the world.
Glassnode called 2022 one of the most “chaotic, volatile, and financially brutal” years for the digital asset industry in a report as the year drew to a close.
The on-chain analysis firm notes that bitcoin’s short-term realized volatility is currently at multi-year lows — levels not seen since October 2020.
Bitcoin: Realized Annual Volatility – Courtesy Glassnode.
Likewise, future volumes are low and are at multi-year lows with both BTC and ETH trading in similar volumes between $9.5 billion and $10.5 billion per day.
BTC vs ETH futures volumes – courtesy Glassnode
“This shows the massive impact of liquidity tightening, widespread deleveraging, and the weakening of many lending and trading desks in the space,” Glassnode said.
The company noted that the 2020-2021 loose monetary policy era created a record year for on-chain gross profit. More than $455 billion was taken annually by Bitcoin investors moving funds on-chain with the peak arriving in November 2021.
Since then, the bear market system has taken hold, and the market has returned over $213 billion in realized losses. This equates to 46.8% of the upward earnings for 2020-2021,” GlassNode noted.
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