What Is The Halloween Effect In Crypto?
The Halloween effect
The spooks of Halloween are here! So you better have your costume ready! And your trading strategy, because this holiday has some secrets.
Many people are going out to party, preparing their costumes and candy, but that does not stop them from trading on this holiday, so let's talk about The Halloween effect.
The Halloween effect has been talked about in the cryptocurrency and stock markets for a long time now. It's a little bit of superstition, but mainly it has been described as a market timing strategy. The superstition is that crypto and stocks tend to perform well at Halloween up until May.
Who is behind the Halloween effect?
Get ready to be spooked! No one knows where this superstition came from, but it is believed it had existed for hundreds of years, even before digital currencies even existed!
Does the Halloween effect actually impact crypto?
Yes, it does. It wasn't practical at the beginning of crypto, but in 2015, something strange happened. On Halloween 2015, the bear market ended, and crypto performed great until May. The overall market increased by over 40% during those months! If I didn't believe in superstitions, I do now. Crazy upsides also happened in the following years, and it has been a part of crypto ever since.
So get your candy and crypto ready because the market might be trick or treating tonight!