Roses are not the only thing popular on Valentine’s Day for crypto investors. Bitcoin blooms every Valentine’s day, with its price and volume surging. Or at least, that’s how it has been for the past five years.
Bitcoin’s current all-time high, though, is a challenge to beat. Outdoing its previous all-time price high, Bitcoin went over $68,000 in November 2021 after starting the year just under $30,000. As of 13 February 2021, Bitcoin is trading at $43,634.03 (₹32,82,232). So the big question now is: Will the 2022 Valentine’s day be able to live up to the historic return and keep the romance alive? Because otherwise, investors may begin to lose interest. Check BTC to INR at the best rate here.
Two other cryptocurrencies—Ethereum (ETH) and Ripple (XRP)—also seem to be favored by the day of love, but our love is only reserved for Bitcoin in this article. We think that the world’s first cryptocurrency surely deserves the spotlight. After all, all altcoins do spawn out of it.
How Bitcoin Has Historically Performed on Valentine’s Day
Let’s begin with a quick rundown of Bitcoin’s performance. Since 2015, the day of St Valentine and lovers has been very positive for Bitcoin, with the highest daily return of more than 9% occurring in 2018 and an average daily return of 4.73% over the years.
Going by records available, Bitcoin’s price usually shows a consistent 24-hour volume increase on Valentine’s Day with an average of 22%. This has always been the case so far except for 2019 when there was a slight decrease. However, over the years, Bitcoin’s trading volume has been increasing as the market matures, indicating that it is on a positive trend. While that’s great news for investors, it does mean that the bar for Valentine’s this year is set rather high.
Interestingly, a more notable trend in price can be observed on the day before Valentine’s Day each year. In three of the five years studied, Bitcoin has shown negative returns on this particular day of the year. If investors had only invested on 13 February since 2015, the two years of positive daily returns would have allowed them to recover and turn a total positive return. In this case, Bitcoin investors would have gotten a total return of 2.75%.
The chart above shows the history of Bitcoin price action, with each Valentine’s Day marked with a heart.
What’s in store for Bitcoin on 2022 Valentine’s day?
A 2022 survey by Self shows that one out of 25 Americans hope to get some crypto as a gift this year. Yup, gone are the days of champagne, chocolate boxes, or roses! According to the survey, roughly 4% of all Valentine’s Day gifts could end up being crypto coins of some kind. If you are one among the 4%, buy Bitcoin or any other crypto assets here.
This year it will be Bitcoin’s 12th Valentine’s day. The typical 12th-anniversary gift is silk, linen, or pearls, but our guess is that people are now more likely than ever before to stray from the norm. That’s where crypto coins or tokens come into the picture.
Taking the positive return of the past five years into account and Bitcoin’s bullish trend at present, Valentine’s season sure looks like a good time for investors, but don’t just jump into the trading pool without prior research. Just because love is blind doesn’t mean you should invest blindly!
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
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