The price of Bitcoin (BTC) has dropped to its lowest levels in December, falling below $92,000. Chris Burniske, a former ARK Invest crypto lead and current partner at Placeholder VC, suggests that this decline is not due to a loss of interest from investors, but rather reflects seasonal financial patterns that affect the cryptocurrency market. The launch of Bitcoin and Ethereum ETFs in 2024 has further connected crypto with traditional finance, amplifying the impact of year-end activities such as portfolio rebalancing and account reconciliation. Despite Bitcoin's struggles, other cryptocurrencies like ETH and SOL are holding steady or gaining momentum, indicating that the market is not completely risk-averse but rather engaged in typical end-of-year financial adjustments. This suggests that trading strategies and algorithms influenced by institutions have adapted to these seasonal trends. The inclusion of crypto in the stock market means that the correlation with traditional assets and their behavioral patterns is likely to persist.



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