Bitcoin Price to Experience another Holiday Christmas-induced Pump?

It might have become a self-fulfilling prophecy.

  • Bitcoin registers upward price movement across major holidays
  • Google Searches for Bitcoin climbs immediately ahead of holidays only to drop during them
  • BTC movement during holidays might have become a self-fulfilling prophecy

In late November, we talked about how we need toGet Ready for a Thanksgiving Day after Spike in Bitcoin Price” as past data suggested a jump. And we did see a spike as BTC went from $7,400 to $7,640 and then another hike the next day to above $7,800.

So, are we going to experience yet another holiday-induced pump?

As per SFOX’s update on Bitcoin price increase during holidays from early December, which hasn’t been because of FOMO this time has crypto traders watching Bitcoin closely.

Holidays it says have correlated with temporary upswings in BTC’s price, particularly if they coincide with bull runs.

What’s Coming our Way? -8% or +12%

Thanksgiving on the last Thursday of November had BTC in the midst of a three-day climb in price. After bottoming out at $6,515 on Nov. 25, the price rebounded 20.8% in the following four days as it peaks at $7,870 on Nov. 29. But then on Dec. 2, the price fell back to $7,345.

Though there is no knowing with certainty that the Thanksgiving holiday played a role in this rebound, the data is consistent with the crypto performance data during holidays.

On Labor Day, Sept. 2, BTC price increased about 5% and a similar behavior was seen over the Fourth of July when BTC jumped 14% between July 2 and July 4.

SFOX also found that Bitcoin holiday performance correlated with increases in the relative volume of Google searches for “bitcoin’. Relative Google search volume for ‘bitcoin’ peaked before major US holidays only to bottom out during the events themselves.

Google search volume for ‘bitcoin’ in the past 7-days, Source: Google Trends

If we take a look at the past performance of the leading cryptocurrency on the two days before Christmas, bitcoin recorded negative returns on both the days. However, the Christmas Eve day has been a positive one majority of the time but by a small percentage only.

The day after Christmas Eve has been a much positive day with an average of 2.57% and a maximum of 12.28% spike. For the last 3 years, we have been seeing greens on this day.

Source: twitter.com/Bitdealer_/status/1209254260183056385

A Self-fulfilling Prophecy?

So, what’s behind this upsurge? Previously it has been analyzed that it could be because of families getting together and experiencing FOMO, leading to researching and purchasing BTC.

However, the most recent data shows Google searches peaking before holidays and not after. As such the FOMO might not be a plausible explanation rather it could be whale movement.

Whale Alert that tracks and alerts its audience of large transactions made on Bitcoin and other major blockchains shared with SFOX that its large following on Twitter might “actually influence the price in itself.”

It could also be simply traders expecting the market to move during the holidays.

“Market participants could be researching BTC’s position ahead of holidays and then taking long positions in BTC in an expectation of a short-term price increase over the holiday, creating a kind of self-fulfilling prophecy that actually does drive the price of BTC up in the short term.”

Regardless of the forces behind BTC’s holiday behavior, the flash cryptocurrency remains sensitive to major US holidays and now it needs to be seen how do we fare on Christmas and the New Year eve this time.

Bitcoin (BTC) Live Price

1 BTC/USD =$11,666.1549 change ~ 3.53%

Coin Market Cap

$215.27 Billion

24 Hour Volume

$6.29 Billion

24 Hour VWAP

$11.43 K

24 Hour Change

$411.3211

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,466FansLike
2,795FollowersFollow
4,237FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Bitcoin Will Emerge Stronger Out of the Ongoing Crisis: Congressman Tom Emmer

It is the fact that no one has centralized control over Bitcoin that makes it stand out in comparison to fiat currencies that are...

Coca-Cola to Utilize Baseline Protocol For Supply Chain Tracking with Exposure to DeFi

Coke One North America (CONA) has partnered with Provide and Unibright to streamline the supply chain of the largest coca-cola bottlers in the region...

USD-Pegged Cryptos & BTC Continue to Rise in Contradiction to the Falling US Dollar

The US dollar is not having a good start in the second half of 2020. The dollar index, which measures the greenback against a basket...

Coinbase Wallet Integrates Unstoppable Domains; Send Payments Via .Crypto Addresses

Coinbase Wallet, a service rendered by US based Coinbase crypto exchange is extending its support for Unstoppable Domains according to an announcement made by...

Mad Rush to BTC Coming Soon as Barstool Sports' Dave Portnoy Declares ‘I Want to Buy All the Bitcoins'

Dave Portnoy, the founder of Barstool Sports, has now turned his attention to Bitcoin as he said, "I want to buy all the bitcoins." Portnoy...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today