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2019 was a positive year for the Bitcoin price, with the crypto assets valuation roughly doubling itself over the course of twelve months. Although Bitcoin declined heavily over the second half of 2019, it has started off 2020 with a bang.

So, whats to be expected in 2020? Here are five major trends to watch for in Bitcoin this year.

The Bitcoin halving coming up in May is a key aspect of the bull case for Bitcoin in 2020. This is a scheduled occurrence that takes place roughly every four years where the number of new Bitcoin generated around every ten minutes is cut in half. Instead of 12.5 Bitcoin being included as a subsidy for miners in every block, 6.25 Bitcoin will now be generated instead.

Opinions are split in terms of thoughts on how this event will affect the Bitcoin price and whether its already priced into the market. Either way, it should be noted that the only two previous halvings in Bitcoins history led to significant appreciations in the crypto assets price in the months that followed.

The excitement around The Halveninig led to one industry executive to predict a $50,000 Bitcoin price by the end of 2020.

Bitcoin has been referred to as digital gold for a number of years, but 2019 was the year when that meme became much more realistic, according to data from the last six months of the year. In fact, the idea of Bitcoin as digital gold became so prevalent in 2019 that U.S. Congressman Brad Sherman (D-CA) claimed the crypto asset may be a threat to the U.S. dollars dominance in the global economy.

At the start of 2020, the similarities between Bitcoins and golds price movements around increased tensions between the United States and Iran did not no unnoticed. However, longer-term measurements of the correlation between Bitcoin and gold still indicate there is a very weak correlation between these two assets.

The digital gold use case is often referred to as Bitcoins core value proposition, so a closer correlation with physical gold could indicate a greater level of understanding and acceptance of this point from market participants. Additionally, the introduction of central bank-issued digital currencies could clarify the value proposition of something like Bitcoin in the minds of the general public.

Unlike some of the smaller cryptocurrencies out there, Bitcoin does not see serious upgrades happen very often (and for good reason). That said, a major change could take place in 2020.

Schnorr, Taproot, and Tapscript are all expected to be included in the same soft-forking upgrade of the Bitcoin network. A finalized proposal for the activation of these improvements by Bitcoin nodes could be ready as early as this year. Currently, developers are reviewing code related to these potential changes, which are expected to improve privacy, smart contract functionality, and general scalability of the Bitcoin network.

Developments are also taking place on layers above the base Bitcoin protocol. The Lightning Network has been hyped as a solution for faster, cheaper Bitcoin micropayments for a number of years now, and Blockstreams Liquid sidechain has seen growth in terms of the amount of Bitcoin and Tether US available on the platform over the past few months.

Although the Lightning Network has enjoyed a greater level of attention up to this point, it may be Liquid that takes the spotlight in 2020. Due to the large amount of centralization of Bitcoin transactions around exchanges, Liquid could be helpful in lowering congestion on the base Bitcoin blockchain in a situation where there is a large amount of speculation around the Bitcoin price, possibly due to the halving.

In a scenario where demand for block space stays relatively stagnant, its possible that neither of these secondary Bitcoin protocol layers will see much growth this year, as the incentive to change old habits is much weaker.

There is a belief among many Bitcoin technologists that innovations like sidechains and the Lightning Network will eventually send the price of alternative crypto assets to zero. Notably, the altcoin market as a whole is down quite substantially against Bitcoin over the past two years.

And, of course, the final Bitcoin trend to watch in 2020 is adoption by institutional investors. Adoption from institutions has been hyped for many years, but this is not something that happens overnight.

2019 saw the SEC approval of the first 40 Act-regulated Bitcoin fund, which has led one analyst to believe that a Bitcoin ETF approval could be right around the corner. Additionally, Grayscale recently announced inflows of $600 million in new money from investors, mostly from hedge funds. Last week, a survey also found that that financial advisors may be increasing the exposure of their clients assets to Bitcoin and other cryptocurrencies this year.

Link:
5 Major Bitcoin Trends To Watch In 2020 - Forbes

The Bitcoin network hash rate has reached an all-time high at 126 quintillion hashes per second. By comparison, this time last year, the network was hashing at just 38 quintillion hashes per second.

However, of more considerable significance is what this indicates. And that is a trend towards increasing miner confidence. As such, concerns over miner capitulation, in the run-up to the halving, show few signs of credibility.

Bitcoin hash rate over 2 year period. (Source: bitinfocharts.com)

Following Bitcoins stellar form of late, news of the networks hash rate reaching another all-time high should come as no surprise.

Over the weekend, the average daily hash rate peaked at 126 quintillion hashes per second. Putting paid to any notion that miners are cautious about the coming halving this May.

Hash rate is a term that refers to processing power on the network. As Bitcoins get mined, transactions need to be hashed before being added on to the blockchain ledger.

Every one of these hashes is created by successfully completing a complex mathematical puzzle.

The hash rate is a measure of how many times the network can attempt to complete this puzzle every second.

And so, a high hash rate indicates good network health, as well as being a metric of how secure the network is. This is because hackers would struggle to control more than half of the Bitcoin network, to perform a 51% attack, when the hash rate is so high.

With that, as more miners compete to complete blocks, mining difficulty increases. And to stay profitable, only those with access to cheap electricity and the most efficient mining equipment can afford to stay in the game.

Bitcoin is designed to evaluate and adjust the difficulty of mining every 2,016 blocks, or roughly every two weeks.

At this moment, mining Bitcoin is as difficult as its ever been, at 14.78T. In fact, since the start of 2020, mining difficulty on the Bitcoin network jumped 13%.

Bitcoin mining difficult. (Source: blockchain.info)

Add into the mix the coming halving, when miners will receive half the reward (6.25 BTC) for completing a block, the rational expectation is for a mass exodus of miners.

However, the trend towards higher and higher hash rates, suggests that more miners are joining the Bitcoin network, and this doesnt look like a scenario that will play out.

Why is this? After all, if mining profitability gets cut in half this May, why do miners continue to prop up the network, and in greater numbers?

Should the Bitcoin price fail to gain any significant traction after the halving, Bitcoin mining, at current rates, would be unsustainable in the short term.

This can only mean that miners are expecting a significant upswing in the Bitcoin price. Whether that will happen or not is anyones guess. But based on increasing hash rates, its clear that miners believe so.

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Bitcoin Hash Rate Hit a New ATH, And Its Crucial Leading Up to Halving - newsBTC

Today is the day when Orthodox Christians submerge themselves in icy water to mark Epiphany, celebrating the baptism of Jesus in the River Jordan.

Personally I prefer to celebrate my Bitcoin epiphany with a couple of icy beers, but you know, each to their own.

If last week, bitcoin price was all about $8k, then this week was all about $9k. Or to be more specific, would we get there?

Certainly, at the start of the week, the sentiment seemed to have turned bullish. $8k holding throughout the weekend raised hopes of a repeat of last years rally.

After a quiet Monday, the price started to pump on Tuesday, perhaps due to a mass liquidation of short positions on BitMex. From $8.1k bitcoin shot up, pausing briefly at resistance around $8.6k before finally topping out at around $8.8k.

And there it stayed for the rest of the week, trading in a range from $8.6k to tantalizingly close to $9k. It was looking as though $9k would have to wait, but then a spurt this morning saw $9k fall, and eyes move on to the psychologically significant $10k level.

The three competing theories on future bitcoin price models all point in the same direction, albeit at different rates. And a conservative analysis of the level of the next all-time high (ATH) came in at around $75k $85k.

This means that, as usual, anything can happen. Lets see if we can make it through January and keep hold of the months gains so far, for starters.

Bitcoin SV had a notable week to compound its already impressive January gains. Craig Wright and Calvin Ayre have been promising something big for the coin for the past few months.

Still no word on what that might be, although the price has pumped on the anticipation, with BSV flippening Binance Coin (BNB) early in the week. This brought great joy to SV supporters as Binance CEO, CZ, led the delisting of SV when Craig Wright got out his lawsuit hammer, last spring.

But BSV wasnt done there. Price doubled overnight, to see the token flippen its arch-rival, Bitcoin Cash (BCH). Of course, what goes up and all that.

Crypto Twitter was circling SV like a vulture, waiting for the epic crash it sensed coming. It didnt have to wait long. SV started dumping hard, with the previous pump labeled wash trading, something which is actually easier when delisted from major exchanges.

On Tuesday we published an article suggesting that there may finally be some movement on Russias long-debated crypto-legislation. It wasnt the first time that officials have made such claims.

However, it was the first time that such claims were followed two days later by news that the entire Russian government had resigned.

So would the new Prime Minister be likely to expedite crypto legislation? At this stage, its impossible to be sure.

Chinas Central Bank Digital Currency (CBDC) may not be the done deal we have been led to believe. Whilst it is supposedly now ready for limited geographical testing, an ex-governor of the Peoples Bank of China has suggested that current blockchain technology is not efficient or scalable enough.

Meanwhile, it was announced that the Reserve Bank of Australia is trialing its own simulated CBDC in a wholesale payment system.

According to reports, Ripple spent around $170,000 lobbying US lawmakers in 2019 in an attempt to influence crypto regulation. But if you think thats a lot, it spent a massive $450,000 in 2018, with a similar lack of solid results.

According to a survey, over a third of small and medium-sized enterprises (SMEs) in the US now accept payment for goods and services in cryptocurrency.

It must be to cater for all the actual Nazis who are using bitcoin, according to certain US government officials.

What was your favorite bitcoin and crypto news story of the week?Let us know in the comments below!

Image via Shutterstock

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Sunday Digest: Bitcoin Price, BSV Pump and Dump, and Other News - Bitcoinist

Bitcoin [BTC] eminent pull-back seems to have finally occurred and the whales seems to have timed a large shake-shout of long orders. The Price Action (PA) logs one of the longest spinning tops on the daily with the high at $9,188 and low at $8,480.

As reported earlier this morning, the break above the 200-DMA was a strong positive signal. However, the long orders seems to have been squeezed by the whales with a strong rejection.

Datamish reports over $110 million shorts liquidation in the last six hours. Moreover, the shorts liquidated with the break above $9,180 were only about $20 million in size.

Now, price seems to have found support above the 50-Period moving average on the 4-hour chart. Hence, the flash move could be a blip in the a long term scale, if the trend picks up again.

According to derivatives and crypto trader, Zoran Kole. his trading systems still protects the bullish outlook in the long term. He tweeted,

Imo, it looks like a shakeout and not trend reversal. Invalidation below 84xx

Trader Josh Rager also expressed similar sentiments as he continues to stick to his bullish bias. Rager tweeted,

$BTC pullbacks should be expected The important thing to keep an eye on is the market structure and the trend change. Price would likely bounce at low $8ks Unless price made its way down past $7700, I wouldnt worry

However, the short interest in the market seems to be growing with funding rates on futures and derivatives exchange going negative on most exchanges. Traders will be looking to protect the swing above $7500-$7800 for a complete reversal in the trend.

The CME futures market opening is due in the next three hours. As it stands now it is going to open with a bearish gap of around $300 as the closing on price was $8,925.

The volatility and uncertainty in the trend is expected to continue as traders look for gap filling, while bears will seek to watch levels around $8200.

Do you think the pullback was temporary or the bears will take control? Please share your views with.

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Bitcoin [BTC] Price Action Recalls the Bears, as Bounce above $8,500 Keeps them at Bay

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Bitcoin [BTC] eminent pull-back seems to have finally occurred and the whales seems to have timed a large shake-shout of long orders. The Price Action (PA) logs one of the longest spinning tops on the daily with the high at $9,188 and low at $8,480.

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Nivesh Rustgi

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CoinGape

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Bitcoin [BTC] Price Action Recalls the Bears, as Bounce above $8,500 Keeps them at Bay - Coingape

IDCs International Institute for Counter-Terrorism (ICT) has identified a bitcoin front for Hamas which has links to Iran in a report exclusively obtained by The Jerusalem Post.According to the IDC-ICT Cyber desk report, the al-Nasr Brigades Lawa al-Tawahid serve as the military arm of the Popular Resistance Committees, was formed in 2001 by Jamal Abu Samhadna Abu Atayya and operates under the auspices of Hamas.The report also says that the brigades have been funded by Iran in the past, but appear to be low on Iranian funds in the present, leading to the new bitcoin fund-raising initiative.In addition, the organization is known for its kidnapping operation of Gilad Schalit.In the ICT report, the Hamas and Iran-linked groups network of online media platforms is deciphered as well as how they all interact to raise funds for the group.A website called cash4ps enables Hamas to send and receive money out of Gaza for operational terror purposes while simultaneously providing a measure of anonymity to either donors or beneficiaries of the funds, said the report.While monitoring Bitcoin address 1LaNXgq2ctDEa4fTha6PTo8sucqzieQctq, ICTs cyber desk noted an irregular increase in the scope of activity, and a deeper review showed that the same address served a seemingly legitimate financial website by the name of cash4ps.It added that the company connected to the bitcoin address in question has been identified as operating an account in a banned bank.A check with BitcoinWhosWho.com did not reveal any fraud alert associated with the wallet, yet the report said that the Bitcoin Abuse Database website flagged the wallet as a fund-raising wallet for Hamas, the report stated.The Islamic National Bank, which the US gave a terrorist designation in 2010 due to its connection to Hamas, is linked to the financial scheme.The bank has a physical presence in the form of a few branches and ATMs across Gaza in addition to an internet presence under http://www.inb.ps where it offers banking services to Gazans, said the report.On November 28th, the bank opened a new Facebook page which refers to websites associated with the financial scheme in addition to promoting its services and advertising savings accounts. Additionally, the bank refers to a app that can be downloaded on both Android and iOS.Reviewing Facebook posts, ICT was able to connect the wallet with al-Buraq media, which identifies with al-Nasr Brigades and included an appeal for support due to lack of resources and Irans rejection to their request for support in the current time period.ICT also collaborated with Cobweb Technologies to uncover connections between certain Telegram accounts and the terror financing scheme.An ICT inspection on December 1 revealed that the total transaction volume in the wallet in question has reached 3,370 Bitcoin ($23,800,524.) In four years, the wallet has performed more than 4,5000 transactions.Further, the report explained that the company connected to the wallet has two physical addresses in Gaza: (i) in A Rimal neighborhood across from a mosque and (ii) Rafah Balad next to the civil defense office (possibly on the Egyptian side).Moreover, ICT identified Ramadan Alkurd, a.k.a. Wesam Ismael, as connected to the fund-raising operations and has connected him with Hamas.There is a picture online of Alkurd in a Hamas-style uniform and another picture of him making a pro-Hamas sign with his hands. There is additional evidence linking Wesam Ismael to Hamas and proving that the two names are the same person using alter egos.A spokesman for ICT said Hamass use of the wallet for terror financing might be disrupted if the US designated all of the mentioned accounts and entities as connected to terror groups.While that would be a start, the spokesman noted that the West and other countries wanting to blot out terror financing should pass international legislation regulating the bitcoin exchanges.Only with additional regulation, which bitcoin has worked hard to avoid to date, can these nations force bitcoin managers to carry out sufficient due diligence to eliminate their being used as platforms for terror financing.The ICT reports authors included Dr. Eitan Azani, Dr. Michael Barak, Edan Landau and Nadine Liv.

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IDC identifies Hamas bitcoin front with Iran links - report - The Jerusalem Post

Bitcoinis up more than 22% to almost $9,000 in the first 15 days of 2020, the coins best start of the year surge since 2012. With institutional interest gaining traction, and adoption and name recognition on the rise, this decade looks promising for the leading cryptocurrency.

Several factors are fueling Bitcoins bullish run. Global trading company CME Group launched options tied to Bitcoin futures this week, establishing a new vehicle for institutional investors to buy in to the digital currency.

Further, a survey of financial advisors showed that a higher proportion expect to allocate to digital currencies in 2020 than in the past. And 64% of advisors expect the price of Bitcoin to appreciate over the next five years, up from 55% of advisors in last years survey

I think youre going to see greater mainstream adoption, Michael Conn, managing partner at Quail Creek Ventures, told The Wall Street Journal. You can see this happening already with Fidelity and other institutional players moving into the space.

Others, like Jeffrey Gundlach, CEO and CIO at DoubleLine Capital, recommended investors pile into Bitcoin in 2019 before its 95% surge through the year. He recentlydoubled-down and stated that he thinks the coin could nearly double its value by year-end:

I think bitcoins going to go higher in the near term. I think it could go as high as $15,000 in 2020, Gundlach said on his podcast last week.

Bitcoin investors are also hoping on the coins halving will lead to higher prices. The event is set to occur on May 12 and cut the amount of BTC awarded for blockchain mining in half. As the drop in coin reward goes from 12.5 coins to 6.25, the reduced supply entering the market from miners is likely to cause the price of the asset to rise.

Yesterday NewsBTC reported that Fidelity Digital Assets (FDAS) the cryptocurrency-centric arm of investment firm Fidelity has entered a partnership with a London-based crypto asset firm Nickel Digital Asset management.

In a bullish move to expose digital assets to institutional investors in Europe, the partnership is designed to help address the lack of back-office services such as custody of cryptocurrencies among major financial providers.

Following Bitcoins run, smaller digital currencies like ETH and XRP are also up, gaining 25% and 20%, respectively, this month.

Bitcoin was trading at $8,750 per coin at the time of publication.

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2 Reasons Why Bitcoins 22% YTD Performance Is the Start of Something Massive - newsBTC

Bitcoin failed to extend gains above $9,200 and started a downside correction against the US Dollar. BTC price tested the $8,500 support and it could bounce back.

Yesterday, we discussed a crucial breakout pattern in bitcoin above $8,500 on the daily chart against the US Dollar. BTC price extended gains above $9,000, but it struggled to clear the main $9,200 and $9,300 resistance levels (as pointed out yesterday).

A new 2020 high was formed near $9,186 before the price started a sharp decline. There was a break below the $9,000 and $8,800 support levels. Besides, there was a break below a major ascending channel with support near $8,830 on the hourly chart of the BTC/USD pair.

Bitcoin Price

It opened the doors for more losses below the $8,800 support and the 100 hourly simple moving average. Finally, bitcoin tested the key $8,500 support area, where the bulls took a stand.

A low is formed near $8,473 and the price is currently recovering. It traded above the 23.6% Fib retracement level of the recent slide from the $9,186 high to $8,473 low.

On the downside, the main uptrend support is near the $8,500 level. If there is a downside break below the $8,500 support, the price could extend its correction towards the $8,000 pivot level. Any further losses below $8,000 might start a downtrend in the near term.

If BTC price stays above the $8,500 support, it is likely to start a fresh increase. The first key resistance is near the $8,800 area and the 100 hourly simple moving average.

Additionally, the 50% Fib retracement level of the recent slide from the $9,186 high to $8,473 low is also near the $8,830 level. Therefore, bitcoin must surpass the $8,880 area to resume is uptrend towards $9,200 and $9,500 in the coming days.

Technical indicators:

Hourly MACD The MACD is losing momentum in the bearish zone and turning bullish.

Hourly RSI (Relative Strength Index) The RSI for BTC/USD is currently near 40 and struggling to rise towards 50.

Major Support Levels $8,500 followed by $8,000.

Major Resistance Levels $8,800, $8,830 and $9,200.

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Bitcoin Is Plunging, But Its Too Early To Say Bulls Have Given Up - newsBTC

Bitcoin (BTC) investors who are waiting for a price dip to even $6,000 have missed their opportunity already, veteran trader Peter Brandt says.

In a market discussion with Cointelegraph on Jan. 17, the 40-year market stalwart said that contrary to what some believe, BTC/USD has already hit its floor.

They all now want to sit and buy a break back to $6,000 or $5,000 and theyve missed the bottom and during that bottom, I think you had a lot of people accumulate with strong hands, he summarized.

Brandt continued:

The weak hands are out; the strong hands own it.

As a long-time Bitcoin advocate, Brandt was continuing a bullish streak he began on social media earlier this month.

As Cointelegraph reported, his personal sentiment has undergone a change since late 2019 as recently as December, he had warned there remained a chance for Bitcoin to put in lower lows in 2020 thanks to novice investors he described as cryptocultists.

In early 2018, one month after Bitcoin reached its all-time highs of $20,000, Brandt warned markets would not be going any higher, and that an 80% retracement was likely. BTC/USD hit local lows of $3,100 84.5% lower a year later.

Now, however, the danger has subsided, Brandt suggested, in comments echoed in the discussion by fellow trader Alessio Rastani.

I think anybody who is interested in what Bitcoin has to offer has to have at least 10-20% of an ownership position relative to the capital that they could commit to Bitcoin in a bigger perspective, he advised.

Bitcoin has sealed monthly gains of around 35%, with 2020 progress alone at 25%. Markets reached local highs of $9,000 on Friday, before encountering resistance, which coincides with the 200-day moving average price, something which has historically stifled bullish progress.

The latest statistics meanwhile suggest that interest in Bitcoin extends beyond lay consumers volume surges on futures markets signal institutional commitment as well, commentators have said.

Cointelegraph regularly produces Market Discussions, Interviews and Documentaries. To watch more of our videos, subscribe to Cointelegraphs YouTube channel.

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Weak Hands Are Out Trader Who Called $20K Bitcoin Top Calls Bottom - Cointelegraph

Bitcoin recorded another fresh 2020 high Friday as it climbed to $9,000.

There are different theories as to why the number one cryptocurrency suddenly came back to life. Just over a week ago, bitcoin rallied along with gold and oil after geopolitical risks in the Middle East escalated. Some analysts claim that speculators are already positioning for the May 2020 halving. Others claim that the loose monetary policies of central banks is driving investors to take on riskier assets.

While these theories have their own merit, new information tells me that institutional money may be powering bitcoins ascent.

In the fourth-quarter of 2019, the top cryptocurrency struggled to keep its head above water. From a high of $10,350 in October, it nosedived to $6,425 in December. At the time, the atmosphere was so pessimistic that calls for a drop to $5,000 or lower were dime a dozen.

At the same time, however, Grayscale was raking in institutional money. Last year, the Grayscale Bitcoin Trust drove demand as institutions invested $471.4 million. Nearly 200 million were raised in 2019.

This new information tells me that institutional investors helped carve the bitcoin bottom in December. It is no coincidence that the orange coin bottomed out just as institutional money came pouring in.

$200 million is a lot of money for an asset class with a market cap of about $162 billion. The impact of institutional money is magnified if you consider that more than half of BTCs in circulation have not moved in a year. Only $50 billion worth of BTCs have been changing hands over the past 12 months.

The chart shows that 64% of the over 18.04 million BTCs in circulation are dormant. Only 6.46 million BTCs are being used for trading or payments. These numbers indicate that the cryptocurrency is bound to soar if $200 million of new money enters the market.

While $200 million may be enough to carve a bottom, its not sufficient to push bitcoin to greater heights. Should the current bull rally fail to entice new investments, the coin will likely struggle to maintain its momentum. Whats even worse is that institutions might cash out just as new money from hyped retail traders enter the market.

If that happens, we might see bitcoin capitulate to $5,000 as trapped retail money rush to exit the cryptocurrency.

Disclaimer: The above should not be considered trading advice from CCN. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.

This article was edited by Sam Bourgi.

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Institutional Money May Be Igniting the Current Bitcoin Rally - CCN.com

This week saw Bitcoin price (BTC) hitting the $9,000 barrier amid the launch of CME Bitcoin options and Plaids acquisition by Visa, reaching a record price for the last two months.

Bitcoins 27% price gain since the beginning of the year along with the future bullish scenarios laid down by investors may attract new crypto holders. But since BTC/USD is traded 24/7, new investors may be wondering: is there a difference between investing on a particular day of the week?

Figure 1. Crypto market data, 1-day performance. Source: Coin360

The basis of a difference in a day of a week returns comes from traditional stock markets. It has been shown that stock returns on Mondays are, on average, negative. This is called the Weekend Effect. One explanation is that the effects on a particular stock will only be felt on Monday since the market is closed during the weekend. However, the cryptocurrency market is always open: Could we expect the same behavior on Mondays for Bitcoin?

Analyzing Bitcoin returns from the beginning of 2019 until Jan. 13, 2020, data shows that Fridays present the highest average return across the days of the week at 1.1%. In contrast, only two days of the week show negatively average returns, Tuesday (-0.24%) and Thursday (-0.97%).

If an investor only started investing at the start of 2019 on a particular day of the week, Friday would present the best cumulative return, followed by Monday (Figure 2). Taking Fridays as an example, its assumed that the strategy would be to buy BTC closing price on Thursdays and sell it at the closing price on Fridays.

The closing prices (UTC timezone, a rolling 24-hour period) are used for simplicity reasons since the desired time to buy and sell during those days is based on the investors preference. The same buy/sell rationale applies if another day of the week is chosen to conduct the strategy (i.e. Monday).

Figure 2: Cumulative Return for investing on a specific day only between January 2019 and January 2020

Taking a deeper look at Bitcoin returns for a longer time period, as seen from Figure 3, we can conclude that Mondays offer the best average return from all the days of the week (0.54%).

On the other hand, Thursday and Wednesday are the worst days of the week to invest in Bitcoin with an average return of -0.09% and -0.23%, respectively.

Bitcoins Monday anomaly case is reinforced from a statistical perspective since Monday is the only day of the week with a statistically significant result from the used regression models.

Curiously, as a truly anti-status quo coin, Bitcoin shows a mean positive return on Mondays, in contrast to traditional stock markets Weekend Effect.

Figure 3: Average Daily Return for each Day of the Week between April 2013 and January 2020.

Using the same long-term sample starting in April 2013, an investor choosing exclusively one day of the week as a strategy would get the best option by choosing Mondays, followed by Saturdays, as seen from Figure 4.

Figure 4: Cumulative Return for specific day investment during the entire sample analyzed (Between April 2013 and January 2020)

We cannot ignore Bitcoins explosive gains from two highly volatile periods seen in 2017 and how those influence the average returns for the longer time sample. By isolating that year, we find that Monday still shows the highest average return (1.5%) across the days of the week, followed by Thursday (0.55%).

Figure 5: Average Daily Return for each Day of the Week between during 2017

In summary, Bitcoins unique features reveal an opposite behavior to traditional stock markets, showing a positive average return on Mondays when considering wider time periods. However, when dealing with shorter time frames, we identify Fridays as the day with the highest average returns across the days of the week.

As reported by Cointelegraph, a study in September 2019 showed that Bitcoin holders make a profit after an average of 1,335 days, or roughly three years and eight months. Overall, holding BTC has been profitable for over 94% of days Bitcoin has existed, according to the latest data from Bitcoin Hodl Calculator.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

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New Analysis Finds That Mondays Are the Best Days to Buy Bitcoin - Cointelegraph