2025-12-25 10:22:40

The Christmas holiday overlaps with a three-day weekend for the U.S. government. What will happen to the market in the coming days?

At 2:00 AM Beijing time on December 25th, the US stock market will close early. Then, on December 26th, there will be no trading all day. Coupled with the Trump administration's holiday schedule from the 24th to the 26th, traditional financial markets are about to enter a period of concentrated suspension. For global investors, this is not just a simple holiday—short-term trading logic will need to change, risk appetite will need to be adjusted, and capital deployment must be re-planned.

Why is this holiday so critical? Essentially, it’s a liquidity issue. Liquidity is like the blood of the market; the trading behavior of institutional investors on Wall Street directly determines the short-term direction of US stocks and major global assets. During Christmas, most of Wall Street’s big players choose to stop trading and rest properly. As a result, traditional financial capital supply is cut off, and the market falls into a liquidity vacuum.

Historically, what has happened? The data is very convincing. During the 2023 Christmas holiday, the trading volume on the day of early market close was nearly 40% lower than usual. The subsequent full-day market closure further halted trading altogether. When liquidity contracts like this, short-term market volatility tends to be amplified—small inflows or outflows of capital can cause disproportionate price movements.

For traders, what does this window mean? On one hand, they need to guard against slippage risks caused by lack of liquidity; on the other hand, they should also pay attention to the movements of other global markets during the holiday gap, as these may lay the groundwork for post-holiday trends.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

10 Likes

Reward
10
8
Repost
Share

Comment

0/400

MagicBean

· 5h ago

Be careful of liquidity vacuum these days, don't get cut off.

View OriginalReply0

degenwhisperer

· 9h ago

The point about liquidity vacuum is correct. When Wall Street is on holiday, the market is easily manipulated. Stay vigilant with your positions.

View OriginalReply0

PhantomHunter

· 9h ago

The liquidity vacuum period has arrived. Should you buy the dip or hide? I think Wall Street is on holiday, so retail investors might actually have a chance. --- It's the same old story, told every Christmas. But the crypto market doesn't seem to stop. --- Wait, regarding slippage risk, futures trading requires extra caution. Don't let your guard down just because of the holiday. --- Traditional finance is at a standstill, but on-chain transactions run 24/7, everyone. That's our advantage. --- Trading volume has shrunk by 40%. Isn't that a perfect window for a volatility sniper? Those with guts can lay in wait. --- The problem is, what if there's an unexpected news event during the holiday? Poor liquidity means you can't just run out. --- Every year, people talk about liquidity vacuum, but the market still moves as usual. It feels a bit demonized. --- What about the trends in other global markets? The performance of the Asian session during this period is worth paying attention to. --- Retail investors should just wait patiently after the holiday. Entering now is just for institutions to take over, nothing else. --- I'm actually planning to use this window to adjust my positions. It doesn't necessarily have to be trading.

View OriginalReply0

LuckyHashValue

· 9h ago

A liquidity vacuum is coming, but the crypto world is actually the most stable. Traditional financial players should go to sleep.

View OriginalReply0

MerkleDreamer

· 9h ago

Liquidity vacuum needs to be cautious these days. With Wall Street on holiday, retail investors must be even more cautious.

View OriginalReply0

LiquidityOracle

· 9h ago

During the liquidity vacuum period, the crypto world is the main player. Traditional finance is sleeping, and we are taking the opportunity to buy the dip.

View OriginalReply0

ShadowStaker

· 10h ago

ngl the liquidity crunch narrative is way overblown... crypto doesn't sleep tho so this is actually when the real moves happen lol

Reply0

MevWhisperer

· 10h ago

The era of liquidity vacuum has arrived. What can the crypto market do these days? --- When Wall Street is on holiday, large funds are absent, and retail investors are more easily shaken out. Be careful. --- Wait, are you saying that the volatility will be higher these days? Should I increase my position or stay away... --- It's always like this at this time of year. 2023 has already fallen so much, is it happening again this year? --- Slippage risk isn't the main concern; what I'm really worried about are black swan events secretly happening in other markets during the holiday period. --- So, from Christmas to New Year's, should we go long or short? Looking for guidance. --- Liquidity shortages sound scary, but with 24-hour trading in crypto, isn't it still running as usual?

View OriginalReply0