Bitcoin's Explosive Days Outnumber Dull Periods

Bitcoin's price movement is notoriously difficult to predict, and a look at its trading history reveals why. The cryptocurrency trades 24 hours a day, seven days a week, but most of its gains come in just a handful of days each year. This is according to Andre Dragosch, head of research at Bitwise Europe, who notes that 'bitcoin is actually a relatively boring asset'.

The majority of Bitcoin's performance is concentrated in a few explosive days, while the rest of the time it moves sideways and consolidates. In fact, 11 out of the last 18 years saw gains turn into losses when removing just the top 10 trading days. For example, in 2019, removing these days turned a 94% gain into a 40% loss.

Dragosch concludes that 'time in the market beats timing the market' since catching those handful of explosive days is close to impossible. This means that buying and holding Bitcoin for the long haul may be far easier and often more rewarding than trying to time its price swings.