Investors and traders are always looking for an edge, that much is obvious. But when it comes to the bitcoin and cryptocurrency markets, many of the old rules don’t apply. For instance, you cannot perform fundamental analysis on bitcoin like you can for a blue-chip stock. The reason is obvious – most cryptos don’t belong to anyone.
Thus, some investors, particularly those who are new to the blockchain, go to the other extreme and apply no set standards or strategies to their procurement. This too is a mistake. While cryptocurrency tokens are radically different than traditional equities, they do have similarities. Primarily, both asset classes operate on human emotions.
In other words, if somebody wants to buy a stock or cryptocurrency, they’ll do so. The market is always the final arbiter.
With that in mind, a question popped up: when is the best day to buy bitcoin? I’m sure I’m not the only one that pondered this. Given all the craziness that has transpired in the blockchain sphere, if a predictable pattern was discovered, that could help demystify bitcoin, or at least provide some basis for a standardized approach to cryptocurrencies.
To answer this question, I had to first define my parameters. For this discussion, I used a daily-return framework. I next applied situational analytics to the bitcoin historical price data. And what I discovered next was rather surprising.
Turns out, Tuesday had the best average daily return at 0.92%. That is to say, if you bought bitcoin on Monday, you’ll see a 0.92% lift on Tuesday. And it’s a significant boost over the 0.58% average return if you purchased the cryptocurrency at random.
Thus, Monday is the best day to buy bitcoin! Who would’ve thunk?
On the flipside, Saturday is the absolute worst day to buy bitcoin. This is because statistically, Sunday has the worst average daily return at 0.12%. I’ll attempt to figure out the reason why this is, but my best hypothesis is that Jewish traders refuse to trade bitcoin on the Shabbat (Saturday).
So if you’re reading this on a Saturday, you may want to wait until tomorrow to consider your purchase!