As Bitcoin Pushes Toward A Fresh All-Time High, This Seasonal Trend Is A Friend

As Bitcoin Pushes Toward A Fresh All-Time High, This Seasonal Trend Is A Friend
Andrew Rummer

over 2 years ago1 min

Mentioned in story

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.

S&P 500 seasonality chart

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.

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG