- Cryptocurrencies boomed on Memorial Day, with Bitcoin hitting $70,000 and Ethereum hitting $4,000.
- The year 2024 was unlike any other, with increased cryptocurrency activity on Memorial Day.
On May 27th, as the US was celebrating Memorial Day, an interesting divergence occurred in financial markets.
While U.S. stock markets, including the Nasdaq and the New York Stock Exchange (NYSE), were closed for the holiday, the cryptocurrency market was booming.
Cryptocurrency market surges
Bitcoin [BTC] Ethereum surged to the $70,000 level, with various altcoins showing significant gains on the daily chart. [ETH] It also briefly reached a level of $4,000, further boosting the overall market.
Expressing a similar sentiment, a post on Santimento’s X (formerly Twitter) stated,
“Bitcoin's market cap surpassed $70,000 again while #MemorialDay caused a pause in the US #stockmarket. This rally is particularly encouraging because this positive move shows how the #cryptomarket, which has been correlated since 2022, can perform on a rare weekday that is not dependent on the stock market.”
Source: Santiment/X
Echoing the same, TheoTrader pointed out:
“Based on seasonality data, stocks tend to rise in the week after Memorial Day, and we expect a bullish week ahead.”
The past is not a blueprint for the present
However, and interestingly enough, this trend is quite unusual.
According to a Bloomberg report, crypto market trading volumes fell by 43% during Memorial Day in 2020 and 35% in 2021, suggesting the holiday typically sees lower trading volumes.
However, 2024 was marked by new events and unusual market trends, of which this was one. Ryan Detrick, chief market strategist at Carson Group LLC, said:
Source: Ryan Detrick/X
Historically, In election years, stock prices have fluctuated without a clear trend leading up to Memorial Day, but after Memorial Day, stocks often surge, known as the summer rally.
What happens next?
It remains to be seen whether Ryan's prediction will come true, as the stock market is closed on Memorial Day.
However, in the crypto world, where the market is always open, we are already starting to get hints as to how things will be in the near future.
While traditional assets continue to exhibit seasonal patterns, the independence and volatility of the cryptocurrency market poses both opportunities and challenges for investors.
