The Santa Claus rally is finally back in action after sitting out the last couple of years—and it's coming in hot. This seasonal market phenomenon, where assets typically surge in the final weeks of December into early January, is showing real momentum this time around.

After a long absence, traders are actually seeing meaningful upside movement that doesn't feel forced. The setup looks genuine: year-end liquidity flowing in, fresh capital entering the market, and that classic risk-on sentiment kicking back in before the year wraps up.

For crypto markets specifically, this rally carries extra significance. When traditional markets show strength heading into the new year, altcoins and Bitcoin tend to follow suit. We're talking about renewed interest in growth assets, fresh portfolios being rebalanced, and institutions making their final moves before resetting for Q1.

The timing matters too. After years of choppy consolidation, this particular rally is catching everyone's attention. Whether it holds depends on broader macro factors, but the initial run is definitely worth paying attention to if you're positioned or looking for entry points.