Halloween & Bitcoin ?
Happy Halloween to everyone here!
Will Bitcoin Price Benefit From The Halloween Effect?
“There’s a theory, dubbed “The Halloween Effect” that believes that stocks and other assets like Bitcoin perform best starting from October 31 through May, then they do during the other half of the year.
Will Bitcoin price benefit from such effect, or is the idea nothing more than an appropriately spooky superstition for this time of the year?
What is The Halloween Effect?
Investors and traders use a number of tools such as technical and fundamental analysis to attempt to determine the strength or weakness of an asset before setting a buy order. Some analysts use more unorthodox methods, such as dates, cycles, math, and even astrology.
There’s even a common theory that each year, starting in November, assets will perform better and provide greater returns on investment through May, than they will in the other half of the calendar year.
Related Reading | Research Shows That Holidays Cause FOMO Fireworks in Bitcoin Price Charts
This theory is called The Halloween Effect, The Halloween Indicator, or The Halloween Strategy and suggests that buying an asset to hold throughout the winter months will reward the investor handsomely. The trader or investor is then encouraged to “sell in May and go away” – the other half of the market timing-based strategy.”