Thanksgiving dinner or Christmas, there is always an awkward conversation and more often than not, we have heated arguments about politics, religion, etc. The season may bring out the worst in people, however, Bitcoin seems to enjoy the holidays.
During the extreme rally of Bitcoin between November and December 2017, the price of BTC surged into a parabolic ascent from $6,000 to $19,000. New research by SFOX reveals how holidays have had an effect on the price of Bitcoin in the past.
Before the 2017 rally, there were a few people who had heard of Bitcoin; however, after the rally, the topic of discussion during holiday dinners was about Bitcoin and if one should purchase it. The rise in price during these days correlates to a typical FOMO run, causing people to buy more BTC.
Referring to the chart above, the research stated that although the price of Bitcoin came back to $ 10,000-level,
“Thanksgiving of 2017 marked the beginning of bitcoin’s run-up from the low $8000’s to its peak of almost $20,000 on December 17th; Christmas and New Year’s Eve coinciding with smaller jumps in price on bitcoin’s gradual descent into 2018.”
Furthermore, a similar rally was observed during February of 2019 during the two-week Spring Festival celebrated throughout China. The price of Bitcoin rose by 14% during this rally and peaked at ~$4,000, the chart for the price is seen above.
To back up the rise in price during these days, the research mentioned that this surge was corroborated by the keyword search volume on Google Trends. More specifically, the research stated:
“During the winter 2017 bitcoin rally, U.S. search volume for the term ‘bitcoin’ spiked in the days following Thanksgiving, in the days immediately before Christmas, and immediately after New Year’s”
A similar trend was observed in China’s search volume for “Bitcoin” during the 2019 Spring Festival; search volume spiked as the festival began, experiencing four more spikes of decreasing magnitude over the course of the entire festival
The research concluded that “while improved fundamentals pave the way for sustained growth, the whims of psychology, historically, have proven to be relatively short-lived”.