Bitcoin Plunged on Christmas Eve, Loses 'Santa Rally', Set for Worst Quarterly Performance in Three Years
Bitcoin experienced a rare flash crash on Binance’s BTC/USD1 trading pair, plummeting over 70% from $87.6k to $24.1k before quickly rebounding. The incident, attributed to thin liquidity in the emerging stablecoin pair, did not affect other major trading pairs. Currently trading around $87k, Bitcoin is down over 7% year-to-date and is on track for its worst quarterly performance since Q2 2022.
The flash crash highlights the risks of low-liquidity trading environments, where large orders or technical issues can cause extreme short-term price deviations. Meanwhile, Bitcoin has missed the typical "Santa rally," underperforming compared to traditional assets like the S&P 500 and gold, which hit all-time highs. Gold has surged over 70% this year, while Bitcoin has failed to attract similar safe-haven inflows.
Technical factors like falling below the 365-day moving average and significant options expiries have contributed to the stagnation. Persistent selling by long-term holders and ongoing outflows from Bitcoin and Ethereum ETFs—$175 million and $57 million respectively on December 24—have further dampened momentum. Analysts expect limited movement until January due to year-end risk reduction and tax-related selling.
华尔街日报12/25 20:17