The market uncertainty caused by pronouncements from the Federal Reserve has devastated Bitcoin, the leading cryptocurrency by market cap, making it have a terrible week. On the other hand, the asset has displayed signs of strength as the Christmas celebrations heat up, leading some to hope for a run to new highs—highs that could have psychological significance.
Bitcoin Traders Flip Bullish
After falling to lows of about $93,500 on Christmas Eve, Bitcoin exploded to highs of slightly over $99,900 on Christmas Day, 2024, capping a 7% rally. According to Section Feed data, traders are once again quite enthusiastic about the asset’s price in the short run, following the excellent performance.
According to data published by the popular crypto analytics firm, predictions that Bitcoin would soon reclaim the $110,000 price mark inundated social media platforms on Thursday, December 26. The firm’s scale for social dominance spiked from 0 to a high of 0.056.
Bitcoin $110K Hopes Fade Amid Fed Forecast
However, Santion Feed cautions that contrary to expectations, rallies typically happen when the crowd is least prepared. Indeed, Santiment Feed’s graphic from Thursday shows that Bitcoin price corrections have followed previous rises in these $110,000 calls.
Visual representation of the frequency with which Bitcoin price references occur on various social media platforms Source Medication Feed More specifically, once Bitcoin surpassed $106,000 on December 15, the number of calls for its $110,000 price target increased.
However, the price reversed course after peaking at $108,000. Similarly, on December 18, Bitcoin price estimates again surged to $110,000 at $104,000, but these dreams were shattered after the Federal Reserve projected fewer interest rate reductions than predicted in 2025.
Bitcoin Struggles Below $100K
After a sharp drop from the day’s peak of nearly $106,000. The asset has found itself trapped in a price range below $100,000. As of this writing, Bitcoin is trading at about $98,000, having lost some of its Christmas gains, and it seems like the $100,000 price threshold will be rejected at $100,000 once again. Therefore, a Santa rally would be the best bet for short-term Bitcoin bulls hoping for a price surge.
After plunging from a daily high of about $106,000, Bitcoin has been battling to keep its momentum above $100,000. Bitcoin has lost some of its gains during the Christmas rally and is now trading around $98,000. It has been challenging to break beyond the $100,000 mark, and price rejection at this level is becoming increasingly probable.
Given the current trend, many Bitcoin Struggles with shorter time horizons hope for a “Santa rally” to propel prices higher before the year ends. Those with a shorter time horizon hope for a “Santa rally” to propel prices higher before the year ends. The next few days may determine the continuation of a consolidation period or Bitcoin’s ability to regain the $100,000 level.
Summary
The Federal Reserve’s words created market uncertainty this week, severely impacting Bitcoin. Christmas was favourable for Bitcoin traders as the price surged from $93,500 to over $99,900. In spite of social media predictions that Bitcoin will soon reach $110,000, the cryptocurrency’s rallying prices indicate otherwise. Since mid-December, Bitcoin has never been able to stay over $100,000, trading at approximately $98,000. Bitcoin price hopefuls long-term anticipate a “Santa rally” to increase value.
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