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New Research Gives Hope for a Holiday-Fueled Bitcoin Surge 

Bitcoin price

Good news for crypto investors and holders; your holdings just might see a price surge this holiday week. Yesterday, cryptocurrency analytics site SFOX published a blog post detailing that holiday period usually have positive impacts on the crypto market, causing price surges as a result of inherent Fear of Missing Out (or FOMO, as the kids say today). 

In the post, researchers from the company revealed that Thanksgiving of 2017 was a significant point in the market cycle. While Bitcoin was already on a hot streak, this period saw a more significant surge as Bitcoin went from the $8,000 point and didn’t stop until it hit its all-time high of $19,706 the week before Christmas. 

In like manner, the same could be said about February 2019. While this is noted as a point when Bitcoin began its gradual climb from the depths of the bear market, this trend was especially strong during the two-week Spring Festival period in China.

Essentially, the report notes that holiday periods mark a trend of family get-togethers and casual discussions where many people speak about cryptocurrencies and get to learn more about them. Armed with additional information, more people make forays into crypto and buy assets for both trading and experimenting purposes. 

Summarizing, the analysis firm said, “At times when the market is already doing well or improving, holidays have the potential to drive renewed retail interest in buying bitcoin and other cryptocurrencies. That behavior, almost by definition, is FOMO: buying into an asset because one sees it trending upward and wants to benefit from it.”

The report did note that the research results were inconclusive. However, given how much this trend has defined the market, it isn’t far-fetched to assume that Bitcoin could see a surge after Independence Day. 

Still, it’s worth noting that the holidays highlighted in the report tend to have more of a cultural significance than Independence Day. Christmas and New Year’s Eve are probably the two most popular holidays in the year, and thanks to their proximity, the days in-between are pretty much for the camaraderie highlighted in the report.

Also, while there’s a case to be made for the 4th of July being more prominent than Thanksgiving, it’s important to remember that the latter holds over a weekend, while the former is a one-day affair. Thus, with Thanksgiving, families get more time to “bond” and discuss interesting topics; including crypto assets. 

Data from CoinMarketCap showed that Bitcoin’s price actually tanked on Independence Day 2017, as well as on the day after. Bitcoin started Independence Day trading at $2,575 and ended the day at $2,583. As a matter of fact, the highest point for the asset over the next week was  $2,635; not so different from the point it held on the morning of July 4. 

Things weren’t particularly different a year later as well. The 4th of July last year saw a moderate Bitcoin rally, as it started the day trading at $6,447 per token and ended at $6,618. Over the next week, the highest point was Bitcoin trading at $6,784.

Regardless, given how strong Bitcoin has been able to grow without any “holiday assistance” this year, investors can still buy cryptocurrency, kick back and celebrate the country without the fear of the asset dropping its value (whatever the abbreviation for that is).

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      Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.