Seasonal factors can have an impact. Year - end capital repatriation may lead to a reduction in the amount of capital available for investment in cryptocurrencies, potentially causing price drops. Before and after holidays, trading activity may decrease, which can reduce market liquidity and make prices more volatile. However, the impact varies among cryptocurrencies. Bitcoin, being more mainstream, may be less affected compared to small - cap cryptocurrencies. Small - cap coins may experience more significant price swings due to lower liquidity. Some investors may try to use these seasonal patterns. For example, they may buy certain cryptocurrencies before a period when prices are expected to dip due to seasonal factors, hoping to sell at a profit later. But this strategy is not without risks as the cryptocurrency market is also influenced by many non - seasonal factors.