- Memorial Day saw crypto thrive, with Bitcoin hitting $70K and Ethereum $4K.
- 2024 defied norms, showing increased crypto activity on Memorial Day.
As an analyst with a background in financial markets and experience observing trends in both traditional stocks and cryptocurrencies, I find Memorial Day 2024 to be an intriguing anomaly. The thriving crypto market, with Bitcoin hitting $70K and Ethereum reaching $4K, stands in stark contrast to the usual trend of decreased activity on this holiday.
On Memorial Day, the 27th of May in the US, an intriguing contrast came to light in the financial sector.
During the holiday when the U.S. stock markets, such as the Nasdaq and New York Stock Exchange (NYSE), were paused in trading, the cryptocurrency market experienced significant activity instead.
Crypto market surges
As an analyst, I’ve observed a noteworthy upward trend in the cryptocurrency market. Bitcoin [BTC] broke through the $70,000 barrier, while several altcoins reported substantial daily gains. Ethereum [ETH], in particular, momentarily touched the $4,000 threshold, contributing to the collective market euphoria.
Echoing similar sentiments, Santiment’s X (formerly Twitter) post noted,
Bitcoin’s value surpassed $70,000 once more, while Memorial Day caused a halt in US equities markets. This upward trend is noteworthy because it demonstrates crypto markets’ ability to perform independently on those occasional weekdays when they aren’t influenced by the stock market, which they have been linked to since 2022.
Reiterating the same, TheoTrader noted,
As a crypto investor, I’ve observed that the market tends to experience rallies during the weeks following Memorial Day based on historical data. Therefore, I’m optimistic about a potential bullish week in the coming days.
The past isn’t a blueprint for the present
However, as exciting as it is, this trend is quite unusual.
Based on Bloomberg’s findings, the cryptocurrency market experienced a significant decrease in trading volume during the Memorial Day holiday periods in both 2020 (43%) and 2021 (35%). This trend indicates that market activity tends to be subdued during this time.
The year 2024 has been filled with unexpected happenings and unusual market patterns, and this incident was a prime example. To put it another way, Ryan Detrick, the Head of Market Strategy at CarsonGroupLLC, commented on this very topic.
In the past, the stock market has exhibited unpredictable patterns leading up to Memorial Day in election years. Conversely, following Memorial Day, there is typically a noticeable increase in stock prices, a phenomenon referred to as the summer rally.
What lies ahead?
It’s undecided whether Ryan’s forecast for the stock market will materialize or not, as Memorial Day causes markets to be shut down.
In the dynamic world of cryptocurrencies, with markets operating around the clock, early signs are emerging about potential trends and direction for the near term.
With conventional assets showing recurring trends, the unpredictable nature and autonomy of the cryptocurrency market offer investors unique prospects and complexities.
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2024-05-29 08:39