Bitcoin Poised for December Santa Rally on Fed Rate Cuts
Bitcoin Santa Rally prospects are building as historical data from Coinglass shows gains in six of the last eight Decembers, averaging 8–46%. Market sentiment, per LVRG Research, has shifted from panic selling to strategic accumulation by long-term holders ahead of the year-end asset reallocation. Expectations of Fed rate cuts and US fiscal measures—such as a $2,000 tariff bonus and a 50-year mortgage plan—are seen as fresh liquidity stimulus. SignalPlus experts warn these initiatives may drive risk asset inflows and heighten year-end volatility. Traders should track Fed announcements, trading volumes, and market sentiment for potential double-digit gains during the December Santa Rally.
Bullish
Historical patterns of December gains and shifting market sentiment toward accumulation suggest bullish momentum for Bitcoin. Fed rate cuts and fiscal stimulus measures are likely to increase liquidity and drive risk asset inflows, further supporting price upside. Traders often see low year-end volumes combined with amplified volatility, creating conditions for double-digit rallies. While seasonal trends do not guarantee performance, the convergence of these factors points to favorable conditions, making a bullish outlook for the Bitcoin market in December.