Bitcoin hit a record high price of close to $20,000 in late 2017
Cryptocurrency could be on people’s wish list to Santa this year
The price of bitcoin is set to receive a seasonal boost over the coming weeks, according to new analysis of the cryptocurrency.
Research from digital currency exchange SFOX revealed that bitcoin has experienced positive market movements in the build-up to major US holidays in recent years.
In the run up to Thanksgiving last week, bitcoin climbed by 20 per cent over four days to buck a downward trend that had seen its price fall to its lowest level in six months.
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On Labor Day in September, the price of bitcoin rose by around 5 per cent in a single day, followed by a further 4 per cent the next day.
Similarly, the Fourth of July holiday earlier this year resulted in significant gains for the cryptocurrency, with an increase of 14 per cent between 2 July and 4 July.
“We posited that holidays could theoretically contribute to upswings in bitcoin’s price because of families getting together, experiencing FOMO [fear of missing out], and subsequently researching and purchasing bitcoin. However, the most recent data we’ve analysed here show Google searches for ‘bitcoin’ peaking before holidays, not after,” stated an SFOX blog post detailing the research.
“Regardless of which forces are really driving bitcoin’s holiday behaviour, it seems as though bitcoin remains sensitive to major US holidays for the time being, so market participants may wish to keep an eye on upcoming holidays as we enter the month of December.”
The research also uncovered a correlation between bitcoin’s price and Google searches relating to the cryptocurrency – a phenomenon that has been noted in previous studies of the market.
A study in 2017 found that high search volumes for bitcoin-related terms like ‘btc usd’ often preceded price bubbles, while low engagement usually signalled a good time to buy. Data gathered by digital marketing firm SemRush noted an 80 per cent correlation between search volume and bitcoin’s price, though no conclusions were drawn as to which was the determining factor.
Some analysts previously suggested that traders may be manipulating Google searches in order to artificially inflate the price of bitcoin.