Christmas is over: Bitcoin (BTC) loses €1.83 trillion market capitalization

Bitcoin’s Market Cap Drops €1.83 Trillion Post-Christmas

On December 26, the holiday cheer in the cryptocurrency market quickly faded. The price of Bitcoin (BTC) fell by 4% as the festive season ended, dropping the world’s largest cryptocurrency to approximately €90,100. More concerningly, Bitcoin’s market cap slipped below the €1.83 trillion mark, signaling continued weakness in large digital assets under the current market conditions.

Why Is This Happening?
One potential reason is the timing: December marks the end of the quarter, the month, and the year. Many traders and investors close their positions during this period, taking a break until after the holidays.

Another factor is Bitcoin’s growing correlation with traditional financial markets, amplified by the introduction of spot Bitcoin ETFs in the U.S. This connection means trends in indexes like the S&P 500 are now influencing Bitcoin. Despite being traded 24/7, this round-the-clock accessibility may currently be more of a drawback than a benefit.

What Lies Ahead?
Bitcoin’s next bottom remains uncertain. Recently, the cryptocurrency hit a record €102,500 per BTC on Binance before retreating to €87,400.