Why December Would be Good For Cryptocurrency

source

Well the market currently is down from the high it made during the news of Bitcoin ETF approval when we saw Bitcoin reach around $70k the market since dump to around $40k range which made almost every other cryptocurrency asset to reduce greatly in value and made the whole cryptocurrency market to enter a mini bearish phase.

Currently we are witnessing some signs of recovery from the market since them with Bitcoin trading around the $60k level currently as we enter the later stages of Q3 things would probably shape out well for the cryptocurrency market from now till then but most importantly the final quarters would be really great for the cryptocurrency market.

I for one believe that december would be a very good month for cryptocurrency as we move up close to what will set up to be a historic bull run and there are some reasons why I believe so.

Some reasons why;

Holiday Spending and Investment

Well this is one of the reasons I believe we could witness some gains in cryptocurrency come December. This month is usually the time of the year when many workers close and companies do too and with it comes huge bonuses for those working in major firms they could receive holiday packages in form of funds and other work related bonuses.

Now how does this help cryptocurrency?

Well many people who might be willing to invest in cryptocurrency may see this as an opportunity to do this as they are home free from work stress allowed to think with fat bonuses they are more likely to put some of this funds in cryptocurrency as an investment opportunity for a chance to gain more after all we are in a bull run given the media influence and all they would likely do this and this would even greatly help to increase cryptocurrency liquidity during this period and lead to good gains in the market come december.

source

Tax Considerations

This is another key area while many may opt for cryptocurrency investment, december is the end of the year and during this period it provides a chance for many investors to make informed decisions which would help them better optimize tax liabilities and they often make a decision about what to sell and what not to and for those who were invested low performing asset especially they could easily opt to sell and this could be especially for the purpose of tax loss harvesting.

While some may sell underperforming asset others also may seek for portfolio adjustment or diversification and could buy in to cryptocurrency for change or diversification of portfolio which could also greatly help to increase cryptocurrency market activity.

Positive Market Sentiment

Nothing sure beats cryptocurrency market sentiments infact a positive market sentiments may make the market just like negative sentiments may break it so around this december period there is generally positive market sentiments which help bring in more investors in the market.

There is really no suprise to this as this positive market sentiments is generally due to the fact that bullish trend is often most often than associated to this December period probably due to the holiday season as everyone is in good mood or the market dynamic itself as the market ends for the year which ever it is december often comes with positive sentiments in the cryptocurrency market which help ensure more people invest in the market.

So the positive sentiments associated with December is another reason why I believe December would be a good month for Bitcoin and cryptocurrency in general.

Market Cycles

Also because of market cycle, past events most times determines the part a market may go and from the past based on pattern and all December always set out to be a bullish month, it's true that past performances do not always guarantee or indicative of future success but as we have seen in this cryptocurrency market history tends to repeat itself more times than not so it only makes sense to assume it will once again until it fails.

Traders and investors knows this they know December is a good month for cryptocurrency and they are often prepared to buy in during this period and after all they are the once that make the market, yes the people buying in the market ensures that it moves up, I mean without buyers the market would experience a steady decline in price.

So the market cycles of past ensure people are drawn to invest in cryptocurrency around December period and this is another reason I believe we would see major price action come December in the positive side ofcourse.

source

Conclusion

So these are the factors why I believe December is set to be a good month for Bitcoin and cryptocurrency in general and leading to that time I feel strongly that we are going to see a healthy recovery in the market especially come Q4 so let's wait patiently as event unfolds.