The crypto market is about to face the “Christmas test”: the hidden dangers and investment strategies behind the three-day market closure!
Christmas, as an important holiday in the West, is a universally popular time. Meanwhile, Christmas is often accompanied by other celebrations such as Easter. Considering that Christmas usually falls on a Monday, and Saturday and Sunday are the closing days for the U.S. stock market, it results in a three-day closed period. In the operation of risk markets, faced with such a long rest period, funds tend to withdraw from the market in advance, which is regarded as an effective hedging strategy.
However, in observing the flow of funds, we may have overlooked a key factor, namely the role of miners. In recent years, miners have faced considerable challenges. In normal times, Christmas is usually a time when miners settle their electricity bills and process various bank loans. Based on past data, we can see that miners tend to sell Bitcoin around Christmas to obtain funds, and the largest recent sell-off involved 50,000 Bitcoins. In addition, historical data shows that Bitcoin prices generally experienced corrections to varying degrees during the Christmas period.
Therefore, at this special time, we need to pay extra attention to the potential risks of Christmas. Although the purpose of reminding people of risks is to help everyone avoid possible uncertainties, it is not to provide a reason to be blindly bearish. Moreover, it should be noted that the historical data of miners selling Bitcoin is in the past, and this year there are also new factors such as Bitcoin ETFs, so there is still some uncertainty as to whether miners will continue to sell.
