Trump’s Stimulus Plan May Ignite Bitcoin’s Santa Rally – Here’s Why BTC Could Skyrocket

Bitcoin bulls are licking their chops as Trump's stimulus plan hits the wires. Could this be the jet fuel for crypto's traditional year-end surge?

The Santa Claus Rally – Crypto Edition

Market watchers are seeing parallels to 2020's stimulus-fueled bull run. When free money hits Main Street, a chunk always finds its way to crypto – Wall Street's favorite volatility casino.

Technical indicators show BTC flirting with key resistance levels. Break through, and we could see fireworks before New Year's Eve.

Of course, the SEC will probably find a way to rain on the parade – they always do when retail starts having too much fun.

Data from Coinglass shows Bitcoin ended six of the past eight Decembers in positive territory. Gains during these months ranged from 8% to 46%. This pattern has become known as the Santa Claus Rally.

Nick Ruck from LVRG Research says long-term holders have stopped panic selling. They are now buying strategically. He believes Federal Reserve rate cuts and institutional adoption could push prices higher through December.

The Santa Claus Rally happens when Bitcoin rises in December. Year-end Optimism and light holiday trading volume can amplify price moves. The pattern reflects market seasonality where prices follow calendar trends.

Traders often shift from selling to accumulation as they prepare for the new year. This sets the tone for liquidity and risk appetite across digital assets.

President TRUMP recently proposed a $2,000 tariff dividend stimulus check for Americans. He also suggested 50-year mortgages to help housing affordability.

Augustine Fan from SignalPlus compared the tariff dividends to COVID-era stimulus checks. Those checks provided direct money-printing stimulus. The ultra-long mortgages WOULD add capital leverage to the system.

Both measures represent new forms of liquidity easing. Fan says they should benefit risk assets like Bitcoin.

Market Activity Shows Mixed Signals

Strategy Inc bought 487 bitcoin this week. This brought the company’s total holdings to 641,692 coins. The purchase did little to lift Bitcoin prices.

The U.S. Senate approved a bill to end a government shutdown. The House of Representatives will vote on Wednesday. Investors favored stocks over crypto following this news.

BREAKING: U.S. Senate has officially passed the continuing resolution to end the shutdown, sending it to the House of Representatives for a final vote to re-open the government. pic.twitter.com/3oqHrBdiiN

— America (@america) November 11, 2025

Short seller Jim Chanos closed his position on Strategy Inc. He had bet against the company when it traded at a premium to its Bitcoin holdings. The premium has since fallen from 2.50 times to 1.23 times.

Strategy’s stock dropped 20.4% in 2025. Investors questioned why the company traded above the value of its Bitcoin.

On-chain data reveals interesting holder behavior. Whales with over 10,000 BTC have sold for three straight months. They continue unwinding positions from first-quarter ETF inflows.

From November 3 to November 7 (ET), spot Bitcoin ETFs saw a weekly net outflow of $1.22 billion, the third-largest on record. Spot ethereum ETFs recorded a weekly net outflow of $508 million, also the third-largest in history. Spot Solana ETFs posted a weekly net inflow of $137… pic.twitter.com/6QHfqFTsRb

— Wu Blockchain (@WuBlockchain) November 10, 2025

Smaller investors holding under 1,000 BTC keep adding to their positions. Their buying has offset some whale selling pressure.

Rachel Lin from SynFutures says Bitcoin volatility in 2026 will stay high. She notes the reasons differ from past cycles. Institutional flows and liquidity conditions matter more than retail speculation now.

$BTC READY TO PUMP

We’ve seen this setup 3 times before and every time it pumped

Next target: $150,000 pic.twitter.com/UXAgWktkBy

— Pepesso (@0xPepesso) November 10, 2025

Bitcoin shows a 0.6 to 0.7 correlation with U.S. liquidity indicators. These include the Federal Reserve’s balance sheet and M2 growth. If central banks pause easing in 2026, price swings could return quickly.

Other cryptocurrencies followed Bitcoin lower on Tuesday. Ether fell 1.6% to $3,549. XRP rose 0.9% to $2.47. Solana and Cardano each lost over 1%. BNB dropped 2.4%.

Bitcoin currently trades at $105,355 after a 0.7% decline on Tuesday.