Crypto Moves From Christmas Past: How Bitcoin, Ethereum, and Dogecoin Typically Trade Towards the End of the Year – Bitcoin (BTC/USD), Ethereum (ETH/USD)

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As Christmas has arrived, investing in cryptocurrencies may be the last thing on many people’s minds, especially in a year that has seen digital coins get bludgeoned. But BitcoinBTC/USD, EthereumETH/USD, and DogecoinDOGE/USD have their own holiday story to tell over the years.

See also: How to buy Bitcoin (BTC)

The Bitcoin Christmas Bounce: Benzinga analyzed Bitcoin prices between December 20 and December 31 of last year. Bitcoin broke above the $50,800 mark around Christmas Eve and was buoyant during that time. 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 has acted more as a shock absorber. In 2021, investors hit an all-time high of $68,789.63 in November of the same year. Fast forward to the end of 2022, the apex coin has fallen 75.6% from this level.

BTC-USD performance in December 2021 Courtesy of CoinMarketCap

In 2020, the trend was quite the opposite, as Bitcoin rose to $29,00.72 on the last day of this year. The coin topped out on Christmas Eve at $23,735.95.

BTC-USD performance in December 2020 Courtesy of CoinMarketCap

Ethereum followed Big Brother: Ethereum followed the centerpiece in terms of price action during the holiday season of 2021. The second-largest coin hit the $4,100 mark on Christmas Eve, but on the last day of trading that year, it closed at 3,682.63.

The Vitalik Buterin-founded coin is riding the 2021 non-fungible token boom. During this month, Ethereum’s decentralized finance protocols had $122 billion locked in value. However, the following month in December, things had cooled down for the cryptocurrency.

ETH-USD performance in December 2021 Courtesy of CoinMarketCap

During the 2020 holiday season, things weren’t the same. ETH ended Christmas Day at $626.41, but on the last day of trading that year it was at $737.80.

ETH-USD performance in December 2020 Courtesy of CoinMarketCap

Santa Loves The Good Boi: Dogecoin rose on Christmas 2021. The meme coin, known for attracting celebrities like Elon Musk and Snoop Dogg, ended on Christmas Day at $0.19. On the last day of trading in 2021, it had fallen to $0.17.

By Christmas 2021, DOGE was up 4,625%, buoyed in part throughout the year by Musks’ tweets about the meme coin.

DOGE-USD performance in December 2021 Courtesy of CoinMarketCap

In 2020, the meme coin was seen hovering around the $0.045 mark on the eve of Christmas and New Years. However, DOGE had crossed the 5 cent mark on December 21, just before the holiday season.

DOGE-USD performance in December 2020 Courtesy of CoinMarketCap

2022 was the year of Krampus: November saw the bankruptcy of Sam Bankman-Fried’s FTX cryptocurrency exchange, which led to a massive drop in the prices of major coins. This year has been dominated by hawkish politics from the world’s major central banks.

Glassnode dubbed 2022 one of the most chaotic, volatile and financially brutal years for the digital asset industry in a report as the year drew to a close.

The on-chain analytics firm noted that short-term realized volatility for Bitcoin is currently at multi-year lows not seen since October 2020.

Bitcoin: Annualized realized volatility courtesy of Glassnode.

Similarly, future volumes are depressed and are at multi-year lows, with BTC and ETH trading at similar volumes between $9.5 billion and $10.5 billion daily.

BTC vs ETH Futures Volumes Courtesy of Glassnode

This shows the massive impact of tight liquidity, widespread deleveraging and the write-down of many lending and trading desks in the space, Glassnode said.

The company noted that the loose monetary policy era of 2020-21 created a record year for total profits earned on the channel. Over $455 billion a year has been taken 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 over $213 billion in realized losses. That equates to 46.8% of 2020-21 bullish earnings, Glassnode noted.

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