Because the line between traditional markets like stocks and cryptocurrency markets has blurred in recent years, many believe that the Santa Claus rally is alive and well in crypto markets.
During Christmas time, most of the traders are retail, with many hedge funds and VC firms on vacation. There is speculation that because the market has less short-sellers(which tend to be hedge funds), the market has a bullish sentiment.
As we all probably know, most crypto traders are retail. Not only that, the cryptocurrency market is actually open during Christmas. As of writing this, Bitcoin has recently broken above 51,000. Belief in a crypto Santa Claus rally is gaining traction.