Bitcoin (BTC) loses $2 trillion in market cap

It’s December 26th, the day after Christmas, and to put it mildly, the holiday spirit didn’t last long – especially in the cryptocurrency market. As soon as the global holiday came to an end, the price of BTC began to fall, falling as much as 4% during today’s trading session.

As a result, the leading cryptocurrency’s quotations reached $95,200. But what is even more worrying is that the largest amount of $2 trillion was lost from Bitcoin’s market capitalization. This is not the first time this has happened recently, but it once again shows the weakness of key digital assets in the current market environment.

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The reason may be that December is the end of the quarter, the end of the month and the end of the year. This is the time when traders and investors close their positions, say goodbye and return after the holidays.

For example, given that Bitcoin is more highly correlated with traditional financial markets than ever before this year, largely due to the launch of spot Bitcoin ETFs in the US, the trends typical of the S&P 500 will have a direct impact on the cryptocurrency market.

In this case, the fact that Bitcoin is traded around the clock and without days off does not seem to be an advantage, but rather the opposite.

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It remains to be seen where the major cryptocurrency will hit its local bottom. After recently hitting a new all-time high of $108,353 per BTC on Binance, Bitcoin price fell to a maximum of $92,300. There is also an open gap of around $77,000 per BTC on the CME that has not been filled after November’s events, which also serves as a worrying benchmark for crypto traders.