Santa Rally Fades This December as Volatility Rebounds and Market Leadership Rotates, Say RBC Capital Markets and Schwab Asset Management

Despite a long-standing December tradition in traditional markets, the crypto markets face an uncertain start to the month. RBC Capital Markets’ derivatives strategy head notes that a classic Santa Rally is not guaranteed, and a renewed volatility spike could emerge as traders hedge risk amid mixed macro signals.

Schwab Asset Management’s Omar Aguilar warns that post-policy developments have produced dispersion and rotation among leaders, a dynamic that could keep liquidity choppy for digital assets. Tokens with fragile liquidity may underperform while larger cap coins ride any nascent risk-on rally.

For crypto traders, emphasis on risk management and liquidity is essential as macro data and policy cues evolve. Implement disciplined hedging and monitor on-chain liquidity metrics to discern durable trends from noise.