Analyst’s reminder: The ten best bitcoin days account for the majority of gains
Sep 30, 2019
Bitcoin has been going through a rough patch lately. Last week, the price of the world’s biggest cryptocurrency fell from about $10,000 to just above $8,000, down nearly 20 percent.
For those who have or are thinking about panic selling in this downturn, Tom Lee, crypto analyst at the investment research firm Fundstrat, has a reassuring message.
Top ten days
In a post on Twitter, he mentions a simple rule he has. The rule is that the majority of bitcoin’s price gains so far usually only occur during the ten best trading days of the year.
During the latest bull market in 2017, the bitcoin price soared a total of 1,136 percent during these ten days. But even in 2018, when it was a bear market, the gains during these ten days corresponded to 66 percent.
“Are you that good at trading?”
In fact, if you remove these top ten days for bitcoin, the price is down 25 percent annually.
According to Tom Lee, one should, therefore, be careful about making investment decisions based on emotions.
“All the gains come in ten days. Are you that good at trading?”, Tom Lee writes on Twitter.