the 31 October It is a very special date for many people around the world. For most ordinary people, this date is dedicated to the Halloween party. A great time to have fun scaring family and friends.
However, October 31 is also the bitcoin anniversary date. In fact, its white paper published by Satoshi Nakamoto on October 31, 2008 made it the world’s largest cryptocurrency by market capitalization.
Because of the worldwide success after the creation of BTC, many believe that Halloween 2008 marked the beginning of cryptocurrencies.
In addition, the appearance of the scariest holiday of the year brings the opportunity for another term to return: Halloween effect.
What is the Halloween effect?
The Halloween effect is basically a superstition that enjoys great popularity among traders. They believe in Bitcoin (BTC) and the stock market as a whole generally more effective during the period from the end of October to the end of May.
However, the Halloween effect did not emerge appearance of the crypto market. Quite the contrary, their origins go far beyond the cryptocurrency space.
When we analyze the historical facts, we can easily notice that some data indicate that the winter months usually a better time to invest in traditional assets.
Many hypotheses have emerged to justify this fact, although most are still debated today. Some argue that the situation may have something to do with the fact that, for a very long time, people tend to start their summer holidays in May. A factor that would cause investors to sell their investments during the same period.
Therefore, the numerous studies that have been done clearly show that the markets have been biased since May experience a significant reduction valuable. On the other hand, during the month of November, we notice that prices have started to rise, with investors trying to buy assets.
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How is the Halloween effect affecting Bitcoin in particular?
If it is true many investors Bitcoin has already been associated with the Halloween effect in the past, it is only recently that the theory has made complete sense within the community.
Indeed, after extensive analysis of the data history related to Bitcoin curve, it can be noted that during the Halloween period for the past three years, the price of BTC has increased significantly year on year.
As of October 31, 2017, one BTC token was trading at $6,468. The cryptocurrency then had a total market capitalization of $107.7 billion. Immediately after that date, the cryptocurrency market went into an intense frenzy when Bitcoin hit an all-time high of $20,000 in December before recovering.
However, the price of Bitcoin actually rose by about 52% between Halloween 2017 and May 1, 2018. Although it was not until Halloween 2019 that the value of the BTC token increased exponentially until it reached. which peaked on Halloween 2021 at $61,300.
Will there be a Halloween effect this year?
Between Halloween 2021 and Halloween 2022, Bitcoin lost about 65% of its value. The cryptocurrency is currently trading at a price just under $21,000.
For most crypto experts, it would be very difficult to suggest that the token will be able to make another jump in value for the fourth year in a row.
During a survey conducted by CoinMarketCap of its community, approximately 28,488 participants promised to set the price of BTC for Halloween 2022 at $21,248. A price that shows a significant increase on its current price but is still falling -65.17% from last year.
In addition, for reduce risk Due to the possible BTC token sale, investors started withdrawing their Bitcoin from most cryptocurrency exchanges.
Although it is true that the price of Bitcoin cannot rise between Halloween 2021 and 2022, All is not bleak for the cryptocurrency market in general.
In fact, according to research carried out by sites specializing in the industry, about 18% of Americans many cryptocurrencies have already been invested in the summer of 2022. This statistic represents a 125% increase. compared to the 8% of Americans who were involved in the cryptocurrency industry in the summer of 2020.
The whales continue to accumulate Bitcoin, which Good news for the bull market.