Memorial Day surge: Bitcoin hits $70,000 as US stock markets take a breather

• Memorial Day saw crypto boom, with Bitcoin hitting $70,000 and Ethereum hitting $4,000.
• 2024 defied norms, showing increased crypto activity on Memorial Day.

On May 27, as the United States celebrated Memorial Day, an interesting disparity emerged in financial markets.

While the US stock market, including the Nasdaq and the New York Stock Exchange (NYSE), was closed for the holidays, the cryptocurrency market was booming.

The crypto market is exploding

Bitcoin [BTC] reached the $70,000 mark and various altcoins posted significant gains on their daily charts. Ethereum [ETH] also briefly reached the $4,000 level, adding to the overall market enthusiasm.

Echoing similar sentiments, Santiment Message X (formerly Twitter) noted,

“Bitcoin once again eclipsed a $70,000 market value, while #MemorialDay put US stock markets on pause. This rise is particularly encouraging, as the positive movement reveals how #crypto markets can perform on the rare days of the week when they are not dependent on the stock market with which they have been correlated since 2022.

Source: Santiment/X

Reiterating the same, ThéoTrader note,

“Based on seasonal data, we tend to rebound the week after Memorial Day, and we expect a bullish week ahead.”

The past is not a model for the present

However, as exciting as it is, this trend is quite unusual.

According to Bloomberg According to one report, crypto market volume fell 43% in 2020 and 35% in 2021 during the Memorial Day period, suggesting that activity is typically low during this holiday.

But the year 2024 was marked by new events and atypical market trends, and this is one of them. Remarking on the same subject, Ryan DetrickChief Market Strategist at CarsonGroupLLC, said:

Source: Ryan Detrick/X

Historically, during election years, stock prices have fluctuated without a clear trend as Memorial Day approaches. However, after Memorial Day, stocks often surge, often referred to as a summer rally.

What awaits us?

Since the stock market is closed on Memorial Day, it remains to be seen whether or not Ryan’s prediction will come true.

But, in the crypto space, where markets are still open, we are already starting to get clues as to where things might be headed in the near future.

While traditional assets continue to exhibit seasonal trends, the independence and volatility of the cryptocurrency market presents both opportunities and challenges for investors.

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