As Christmas approaches, investing in cryptocurrencies may be the last thing on many people’s minds, especially in a year when digital currencies have been under attack. But bitcoin BTC/USD🇧🇷 Ethereum ETH/USDand dogecoin DOGE/USD have their own holiday story to tell over the years.
See too: How to buy Bitcoin (BTC)
Bitcoin’s Christmas Leap: Benzinga analyzed Bitcoin prices between December 20th and December 31st of last year. Bitcoin surged above the $50,800 mark on Christmas Eve and was dynamic in that period. However, the apex cryptocurrency closed at $46,306.45 at the end of 2021.
Overall, 2021 has been a great year for cryptocurrencies, including Bitcoin. But 2022 acted more as a buffer. In 2021, investors reached an all-time high of $68,789.63 in November of that year. Fast forward to the end of 2022, and the apex coin is down 75.6% from that level.
BTC-USD Performance in December 2021 — Courtesy CoinMarketCap
In 2020, the trend was reversed as Bitcoin rose to $29,00.72 on the last day of that year. The coin closed Christmas Eve at $23,735.95.
BTC-USD Performance in December 2020 — Courtesy CoinMarketCap
Ethereum followed Big Brother: Ethereum trailed the apex 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 final day of trading that year, it closed at 3,682.63 .
O Vitalik ButerinThe Ethereum-founded coin was on the boom of non-fungible tokens in 2021. The coin saw an increase of nearly 450% during that year, reaching an all-time high of $4,648.54 on November 10, 2021. During that month, the protocols Ethereum’s decentralized financials had $122 billion locked in value. However, the following month, in December, things cooled down for the cryptocurrency.
ETH-USD Performance in December 2021 — Courtesy CoinMarketCap
During the 2020 holiday season, things weren’t the same. ETH ended Christmas Day at $626.41, but on the last trading day of that year it was at $737.80.
ETH-USD Performance in December 2020 — Courtesy CoinMarketCap
Santa Claus Loves the Good Boi: Dogecoin soared during Christmas 2021. The meme coin, known to attract celebrity bulls like Elon Musk and Snoop Dogg, ended Christmas Day at $0.19. By the last trading day in 2021, it had dropped to $0.17.
By Christmas 2021, DOGE was up a staggering 4,625%, boosted in part throughout the year by Musk’s tweets on the meme currency.
DOGE-USD Performance in December 2021 — Courtesy CoinMarketCap
As of 2020, the meme currency has been seen around the $0.045 mark on Christmas and New Year’s Eve. However, the DOGE crossed the 5 cent mark on December 21, just before the holiday season.
DOGE-USD Performance in December 2020 — Courtesy CoinMarketCap
2022 was the year of Krampus: November saw the bankruptcy of Sam Bankman-Friedcryptocurrency exchange FTX, which led to a massive drop in the prices of major currencies. This year has been dominated by the deceitfulness of the world’s major central banks.
Glassnode called 2022 one of the most “chaotic, volatile and financially brutal” years for the digital asset industry in a year-end report.
The on-chain analytics firm noted that perceived short-term volatility for Bitcoin is currently at multi-year lows — levels not seen since October 2020.
Bitcoin: Annualized Realized Volatility — Courtesy of Glassnode.
Likewise, futures volumes are depressed and at multi-year lows, with BTC and ETH trading at similar volumes between $9.5 billion and $10.5 billion a day.
BTC vs ETH Future Volumes — Courtesy of Glassnode
“It shows the huge impact of the liquidity squeeze, widespread deleveraging and the compromising of many lending and trading desks in the space,” said Glassnode.
The company noted that the 2020-21 loose monetary policy era created a record year for total profit realized on the chain. Over $455 billion annually has been raised by Bitcoin investors moving funds on-chain, with the peak coming in November 2021.
“Since then, a bear market regime has dominated, and the market has returned more than $213 billion in realized losses. This equates to 46.8% of total 2020-21 profits,” noted Glassnode.
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