Coingape - 7/8/2019 4:02:42 PM - GMT (+0 )
Bitcoin experienced a massive bull run between Nov. & Dec. 2017 in which the coin recorded a peak price of around 21k USD. The price of bitcoin surged exponentially from around 6k USD to around 19k USD in December 2017 and later surged a bit higher into the new year. As of January of 2018, the price had touched 20k USD per unit of the coin. This was where things were before the bears took over the crypto market from early 2018 till the end of the year. Bitcoin didn’t have a great year and had crumbled down to record a price fall of more than 80% at $3600.
The research note released by SFOX recently pointed to the fact that holidays and festivals must have instigated a massive turnout for people buying bitcoin in late 2017 and indeed, might have caused the corresponding price movements, sighting few examples to support the hypothesis. As people entertained FOMO(Fear Of Missing Out), many got interested in buying the digital currency while only a few were interested in selling. As the law of demand and supply set in, the price movements favored bitcoin, and with the ‘craze’ of nurturing the common touch all over the place, bitcoin had no option than to rise uncontrollably.
The research documentary from SFOX also indicated that a persistent rise in the price of bitcoin occurred during the Chinese Spring Festival celebrated in February of this year. At the time, the bitcoin price rose about 14% from $3,419.17 to $3,908.97. The price then continued in this trend to rise over the $4,000 level before retracing back down to the $3,750 area in the days after the holiday season.
Apart from the Chinese festival, another pointer the research indicated was the new Christmas and new year festivities in which considerable price surge had been recorded in recent years.
The research note added that there wasn’t a large amount of data to go on in terms of the impact of holidays on bitcoin price because late 2017 was the first time bitcoin had generated sufficient relevance enough to instigate discussions to take place around the topic between friends and family members during the holidays.
According to the research note,
“The data we’ve seen seem to reinforce general perception: 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[.]”
The prediction, according to the report, therefore, is that later in 2019, bitcoin may set to follow the same trend of holiday-inspired price surge around the Christmas and new year festivities. This time, if bitcoin rises exponentially as observed in 2017, then, we may likely see the price surging beyond its present all-time-high further to around 23k USD.
I am a certified cryptocurrency expert and Blockchain journalist covering crypto market analysis and general Blockchain adoption and development.
I worked with a media house, coinsauce where I researched and produced opinion and thought pieces on blockchain and cryptocurrencies. You can follow me on Twitter at @dare_shonubi or reach out to me at dare[at]coingape.com