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Here Is What Historical Data Presents for Bitcoin in December; FTX Japan To Allow Withdrawal of Funds

The seasonal cryptocurrency pattern suggests that following the catastrophic collapse of the FTX exchange, Bitcoin might suffer more losses in December.

 Bitcoin may be in for further losses if history is any indication. The question is whether concern will be reduced by a Fed that is less savage. Losses in November usually always are followed by a weak December, according to historical data.

According to data gathered by Bloomberg, the largest cryptocurrency dropped 16% in November and, during the past ten years, it always had a dismal December after decreases in the previous month.

The trend was clear in 2018, 2019, and 2021, leaving a December decline that was on average close to 11%. Given the increased likelihood that the equities bounce from this quarter will continue as the Federal Reserve switches to modest interest-rate hikes leading up to Christmas, cryptocurrency may lag stocks if history is any indication.

According to John Toro, head of trading at digital-asset exchange Independent Reserve “The digital asset class is working through a period of contagion, where assessing counterparty credit risk and solvency remains imperative,” “It seems most likely that during this period of heightened credit risk, Bitcoin will underperform other high-beta risk assets.”

Around the time that Sam Bankman-FTX Fried’s trading platform and sibling investment firm Alameda Research filed for bankruptcy on November 11, the cryptocurrency markets plunged. As the month progressed, they stabilized, supported in part by indications that the Fed will adopt a less aggressive stance.

In light of tighter monetary policy, Galaxy Digital Chief Executive Officer Mike Novogratz lowered his prediction for Bitcoin to reach $500,000 in five years but added that the currency will still reach that level someday.

As of the time of publication, Bitcoin had barely altered and was trading at just around $17,000, while Ether, which came in second, remained stable at $1,272. Amid a protracted crypto bear market that brought down several digital asset enterprises, a gauge of the top 100 tokens has lost more than 60% of its value this year.

FTX Japan To Allow Withdrawal of Funds

The Japanese subsidiary of the defunct crypto-empire FTX announced that it is striving to enable consumers there to withdraw their funds, opening the door for the extremely unusual situation of investors receiving money back from the defunct exchange.

According to a Thursday update on its website, the new FTX Trading management team has authorized the plan for the resume of withdrawal services, which were initially suspended on November 8. The company is implementing controls, security audits, reconciliations, and reviews as part of the plan.

Image Credit: Shutterstock

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