Bitcoin (BTC) has long been known for its strong performance in the fourth quarter (Q4), often ending the year with a “Santa rally.” This term describes the historical trend of bitcoin gaining value in the last months of the year, especially in December. But 2024 seems to be breaking this tradition, leaving investors and analysts wondering what’s next for the cryptocurrency.
Bitcoin’s Historical Q4 Success
Since 2013, Q4 has been bitcoin’s best-performing quarter, with an average gain of 85%. Even the final weeks of the year — Week 51 and Week 52 — usually bring steady gains, averaging 2.8% and 3%, respectively. However, this year is different. Bitcoin’s Q4 gains are below 50%, and the current week is projecting an 11% drop.
In previous years, such as 2021, even when bitcoin faced corrections, it was part of a larger bull run. In contrast, 2024 shows mixed signals. While some bullish indicators remain intact, the overall performance has not met expectations.
Why is Bitcoin Underperforming in Q4 2024?
Macroeconomic Factors
Broader economic forces may explain some of bitcoin’s underperformance. Rising interest rates, geopolitical tensions, and inflationary pressures have…
