Quite why this phenomenon should occur is unclear, and in truth there are probably several factors behind each individual rally. But a few of the major theories on why markets rally in December include:
Seasonal goodwill among investors, who are more willing to buy around Christmas Markets rising on lower volumes over the holiday period Fund managers rebalancing their portfolios before the end of the year People investing their Christmas bonuses Bargain hunting before prices rise in January (known as the January effect) However, the biggest cause of a Santa rally may well be the psychology of the markets themselves.
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Why might #BTC & #Crypto enjoy a Santa rally?
Quite why this phenomenon should occur is unclear, and in truth there are probably several factors behind each individual rally. But a few of the major theories on why markets rally in December include:
Seasonal goodwill among investors, who are more willing to buy around Christmas
Markets rising on lower volumes over the holiday period
Fund managers rebalancing their portfolios before the end of the year
People investing their Christmas bonuses
Bargain hunting before prices rise in January (known as the January effect)
However, the biggest cause of a Santa rally may well be the psychology of the markets themselves.