- Memorial Day saw crypto boom, with Bitcoin reaching $70,000 and Ethereum hitting $4,000.
- 2024 defied the norms and showed increased crypto activity on Memorial Day.
On May 27, as the United States celebrated Memorial Day, an interesting disparity emerged in the financial markets.
While the US stock market, including the Nasdaq and the New York Stock Exchange (NYSE), were closed for the holiday, the cryptocurrency market boomed.
Crypto market is rising
Bitcoin [BTC] rose to the $70,000 mark, and several altcoins showed significant gains on their daily charts. Ethereum [ETH] also briefly reached the $4,000 level, adding to the overall market excitement.
Echoing similar sentiments, Santiments X (formerly Twitter) post commented:
“Bitcoin has once again eclipsed a market cap of $70,000 as #MemorialDay has put US stock markets on pause. This increase is particularly encouraging as the positive move shows how #cryptomarkets can perform on the rare weekdays when they are not dependent on the stock market they have been correlated with since 2022.
Source: Santiment/X
Repeating the same, TheoTrader noted,
“Based on seasonal data, we tend to rise the week after Memorial Day, and expect a bullish week.”
The past is not a blueprint for the present
As exciting as it is, this trend is quite unusual.
According to Bloombergs According to the report, crypto market volume fell 43% in 2020 and 35% in 2021 during the Memorial Day period, indicating that activity is generally low during this holiday.
But 2024 was marked by new events and atypical market trends, and this was one of them. Making the same comment on this, Ryan DetrickChief Market Strategist at CarsonGroupLLC said:
Source: Ryan Detrick/X
Historically speaking during election years, stock prices fluctuated without a clear trend leading up to Memorial Day. However, after Memorial Day, stock prices often skyrocket, known as a summer rally.
What lies ahead?
Since the stock market is closed on Memorial Day, it remains to be seen whether Ryan’s prediction will come true or not.
But in the crypto realm, where the markets are always open, we’re already starting to get hints of where things might go in the near future.
As traditional assets continue to exhibit seasonal patterns, the independence and volatility of the cryptocurrency market presents both opportunities and challenges for investors.