JAKARTA - Throughout last November, the crypto market experienced high volatility which tended to experience sharp declines. Plus, it was the FTX crypto exchange crash that caused the crypto market to suffer and caused investors to worry and panic.
Then, what about the projections for December? Tokocrypto trader, Afid Sugiono, explained that the end of this year might be the start of a recovery period, but it must be treated with caution.
"This December will probably be a period of recovery from the downturn in the market which was destroyed last November due to the collapse of FTX", Afid said in a statement received in Jakarta.
In addition, he added, we must be optimistic about the projections of The Fed's policy that will be softened not to be too aggressive in raising the benchmark interest rate this month.
As previously known, the Chair of the Fed, Jerome Powell, has hinted at the potential for a reduction in interest rate hikes in December. The FOMC meeting itself will be held on December 13-14. The softening of the Fed's stance can boost the crypto market and give hope to investors.
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Afid argues, with lower volatility from the impact of FTX and a potential slowdown in the Fed's interest rate hike, Bitcoin and Ethereum are likely to be bullish in December.
Afid also hopes that there will be a "Santa Claus Rally" phenomenon, namely a phenomenon in which the stock market rallies in the days leading up to Christmas.
Therefore, investors believe that December is a lucky month for stocks which can also help Bitcoin and crypto markets to strengthen.
"Investors believe that Santa Claus's rally in the stock market will flow to the crypto market making Bitcoin prices soar in December", explained Afid.
On the other hand, Afid revealed, it is claimed that the Santa Claus rally effect is no longer relevant. In 2021, Bitcoin hit an all-time high of US$69,044 in November, but the price dropped in December.
That is, the crypto market fared well into November 2021 but dipped in December without the effect of the Santa Claus rally.
"Crypto prices in December can be sideways because investors are in the mood for the holiday season and usually take profits, so they rest on market activity", concluded Afid.
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