Santa Claus rally and Bitcoin exchange rate: why nothing is growing on the crypto market

On New Year's Eve and Christmas Eve, stock markets usually expect a rise, the so-called Santa Claus rally.. And how are things going with this at the end of 2022 in the cryptocurrency market? Bitcoin Investors of the first cryptocurrency are probably not in the most festive mood during the long crypto winter. The bitcoin rate does not show any dynamics at all, being in lateral movement lately. The week from 23 to 30 December was no exception.. The maximum value that BTC reached in these seven days was $16,961, and the minimum was $16,465.. Thus, for the whole week the price changed within 3%. Source: The lack of movement in Bitcoin confirms its historical volatility index, calculated by the BitMEX exchange. The value is near historical lows, and the lowest figure from December 2022 turned out to be a record one. Source: The lack of volatility is due to several factors. Firstly, the bankruptcy of FTX did not play in favor of active trading.. Investors began to fear for their savings, and as a result, withdraw cryptocurrency from centralized exchanges. Secondly, the largest BTC miners sold off all the mined bitcoins, which led to a decrease in the price. And there are no new large injections into cryptocurrency yet. This, among other things, was evidenced by a statement by Messari analyst Tom Dunleavy. Should you invest in bitcoin and other cryptocurrencies now? Opinions vary greatly. For example, CNBC host Jim Cramer believes that it is not worth it, and calls altcoins “money for morons.” Messari CEO Ryan Selkis takes a different view, noting that rapid growth is not to be expected. And MicroStrategy simply continues to increase the number of BTC. This was announced by the founder of the company Michael Saylor (Michael Saylor). From the point of view of technical analysis, the levels have not changed over the week. The nearest support is $16,293, the nearest resistance is $17,000, while it is possible to specifically talk about the beginning of an upward movement in BTC only after breaking the $18,400 mark. increased by 1 point from 27 to 28. Alas, so far investors are afraid of active actions. Ethereum As in Bitcoin, there are no special movements in Ethereum, and certainly there is no New Year's Eve rally. Over the week, the price of the second cryptocurrency by market capitalization changed from $1,235.33 to $1,181.90, that is, fluctuations were within 4.3%. Source: The lack of volatility is determined by the fact that now investors have no desire to take risks. This is also evidenced by the statistics.. Since January 2020, the influx of those who invested money has only been declining. Source: And in general, the number of transactions in the Ethereum network continues to decline at the moment. And December 27, 2022 was generally the worst day in this regard. Then there were only 963,070 transactions. At the peak – in August 2022 – there were 25% more transactions, about 1,270,000 per day. Source: In terms of technical analysis, Ethereum is in a narrow corridor between $1,181.9 and $1,235.33. After the coin breaks down or up this flat trend, the main targets will already be $1,150.6 and $1,352.2. Source: Solana New Year holidays did not add a good mood to Solana investors. The coin lost more than 30% in a week, dropping to the $8 area. Slightly corrected the picture post in the social network from Vitalik Buterin in support of the project developers. But even after this powerful stimulus, the coin lost almost 20% in relation to the value of last Friday. Source: If we talk about the fundamental components, then at the moment there are very few prerequisites for a change in the trend of Solana. For example, the number of active addresses in the network has only been getting smaller since the end of May. Source: You can come to a similar conclusion by looking at the statistics for new addresses on the network. What does it say? About how those who have money are not eager to invest in Solana. And if so, why would it grow in value? Source: The only positive thing for Solana is the fact that the network maintains the second place in NFT sales – after Ethereum. But this does not help the price of tokens to rise, as NFTs themselves are in crisis. Source: From the point of view of technical analysis, Solana is also quite bleak. The level that was support last week – around $10.9 – has now become resistance. Support is the low of December 29 at $8, which also became a historical low. Source: In general, while the cryptocurrency market is at best in a calm stage. There is no pre-New Year growth, although it is in light of the belated Santa Claus rally that the fall has probably slowed down somewhat.. Significant capital in the crypto market is now rather absent, and most investors prefer not to take risks.