Consistent with recently observed trends, Bitcoin looks set to receive a boost from the upcoming Christmas holiday, according to a new report from crypto analysis organization SFOX Edge.
In a blog post on Medium, SFOX writes that holidays appear to have an impact on the price of Bitcoin. For example, “After the price of BTC bottomed out at $6515 on Monday, November 25th, it rebounded 20.8% in the following four days, peaking at a price of $7870.35 on Friday, November 29th [the day after Thanksgiving]. The price subsequently fell back to $7344.56 at the time of writing on Monday, December 2nd.”
Likewise, there was a 5 percent rise on 2 September—Labor Day in the United States—while the price jumped 14 percent around the time of 4 July, or Independence Day.
SFOX stops short of reaching any definitive conclusion about the reasons behind the correlation. But it notes that Google searches for “bitcoin” increase around the holidays, particularly in the days leading up to them. SFOX tentatively states the following:
“Just like the expectation of whale movements impacting the crypto market could end up impacting the market, we might be witnessing the crypto market preemptively responding to holidays simply because traders expect the market to move around holidays.
“This would explain why Google searches for ‘bitcoin’ have peaked before recent holidays rather than after recent holidays: market participants could be researching BTC’s position ahead of holidays and then taking long positions in BTC in an expectation of a short-term price increase over the holiday, creating a kind of self-fulfilling prophecy that actually does drive the price of BTC up in the short term.”
At the time of writing, Bitcoin is priced at $7,535. Keep your eyes on that number as the biggest holiday in the West draws nearer.