Historical price-action dating back to 2012 suggests January is the poorest-performing month for Bitcoin, while November may bode best for the bulls.
With five negative-returning and three positive-returning months since 2012, Bitcoin's median January return is -0.18 percent-the only month of the year with an averaged loss.
The remaining 11 months of the year have all seen positive gains for the top cryptocurrency by market capitalization, based on total averages.
While January winds up the poorest-performing month based on aggregated returns, March is in fact more likely to close at a loss with only 2013 and 2019 closing in the green.
The net average appears to have been inflated by March 2013's increase from $33.53 to $96.15-the 186.78 percent monthly gain being the third-largest on record for Bitcoin.
Aside from November 2018's dramatic 37.01 percent decline, the month has posted positive gains every year since 2012 and has by far been the best-performing with a median 75.58 percent increase.
Despite Bitcoin's supposed non-correlation with the stock market, the coin would appear to be forming seasonal tendencies-the propensity for an asset to undergo predicted changes in price at a certain time of year.
The "January effect" is the well-formed hypothesis that stocks tend to rally in the first month of the year.
Bitcoin's apparent reverse-January effect would give the impression that the largest cryptocurrency by market capitalization and daily trading volume is in fact negatively-correlated with stocks.
It must be said that seasonality is an emerging field of research within Bitcoin's limited data set with less than a decade of comprehensible price-action available compared to more established asset classes.
November on average the best-performing month for Bitcoin, January poorest
gepubliceerd op Jul 26, 2019
by Cryptoslate | gepubliceerd op Coinage
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