Is This the Right Time to Buy Crypto? Or Wait for Holidays to End?
The crypto market is sitting at an interesting crossroads this Christmas. $BTC
is currently hovering between $85,000 and $90,000, down from its peak above $120,000 earlier this year. So is now the moment to jump in, or should you wait until the holiday dust settles?
The honest answer: it depends on your strategy and risk tolerance.
Right now, the market is dealing with what experts call "thin holiday liquidity." Trading activity has slowed as investors step away for the holidays, leaving markets vulnerable to sharp moves in either direction. Think of it like a small pool—any splash creates bigger waves.
There's also a massive options expiry happening on December 26th, with $27 billion worth of contracts set to expire. This could trigger volatility, potentially pushing Bitcoin toward the mid-$90,000s or causing dips t$oward $84,000.
But here's the flip side: some analysts see opportunity. Long-term holders are accumulating during this dip, with institutional investors continuing to buy. Historical patterns also matter—Bitcoin has grown from $4 in 2011 to nearly $99,000 by Christmas 2024, showing remarkable long-term resilience despite short-term swings.
If you're thinking about buying now, consider dollar-cost averaging instead of going all-in. This means spreading your purchases over time to avoid getting caught by sudden price swings. The current consolidation could be a decent entry point for patient investors who understand the risks.
However, January could bring additional volatility as households face post-holiday credit card bills and reduce discretionary investing. Tax-loss harvesting before year-end might also create short-term pressure.
