over 2 years ago • 1 min
As bitcoin attempts to set a fresh record, one major historical trend could become bulls’ best friend.
The chart above shows the biggest cryptocurrency’s price moves this year (in black) compared to the average of the preceding nine years (in pink). Over its – admittedly relatively brief – history, bitcoin has tended to close out the year on a high, with November and December firmly in the green.
A similar pattern of so-called seasonality can be observed in the stock market, with the S&P 500 tending to climb in November and December following a soft patch from August to October.
There’s of course no guarantee that bitcoin – or indeed the stock market – will follow this historical pattern. But some investors will no doubt see the possibility of a “Santa rally” as one more reason to buy.
Bitcoin climbed 5% to $62,220 as of 8am in London on Monday, closing in on the all-time high of $64,870 set in April.
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