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After a brutal start of the year for cryptocurrency investors, Bitcoin returned to its peak in April.
As of April 1, every Bitcoin unit was selling for $ 6,816, about a third of the value that Bitcoin hit at its peak (close to $ 20,000) last December. By the end of April, however, Bitcoin was worth approximately $ 9,300. This is a 36% increase during the month. In other words, if I had bought $ 1,000 of Bitcoin at the beginning of April, you would now be richer in $ 360. (All Bitcoin values in this story come from the Coindesk cryptocurrency information site).
When is the best time to buy Bitcoin in general? Well, it is impossible to predict the future performance of any investment and the cryptocurrencies are particularly volatile and unpredictable. So understanding exactly when buying and selling Bitcoin is essentially a game of hypothesis.
However, it is interesting to observe the extraordinary fluctuations in Bitcoin prices in the last half-year, when they increased by almost 50% in the course of a month, down by almost 40% in another.
What was the most recent month for the purchase of Bitcoin? We are curious to know which period would have been the best (and worst) for a short-term theoretical investor who collected some Bitcoins at the beginning of the month and downloaded it at the end of the month. Here are the numbers:
November 1: $ 6,750
November 30th: $ 9.916
Increase: 47%
December 1: $ 10.859
December 31: $ 13.860
Increase: 28%
January 1: $ 13.412
January 31st: $ 10,166
Decrease: 32%
February 1: $ 9,052
February 28th: $ 10.309
Increase: 14%
March 1: $ 10.907
March 31: $ 6,926
Decrease: 36%
April 1: $ 6,816
April 30: ~ $ 9.300
Increase: 36%
As you can see, November 2017 was the best time in the last six months for a theoretical investor who bought and sold Bitcoin in the space of a month. If you had invested $ 10,000 in Bitcoin at the start of last November, you would have earned $ 4,700 by the end of the month.
The downside, January and March were both smelly for Bitcoin, when the value of cryptocurrency decreased by 32% and 36%, respectively.
Although the above data reveal some of the steep ups and downs of Bitcoin, they do not show even more wild price fluctuations in a few months. For example, in a two-day period (December 5-7), Bitcoin rose from $ 11,696 to $ 16,858. This is a 44% increase, more than just two days!
Coindesk's data indicate that Bitcoin closed at its highest price of all time on December 16, when each unit was worth an incredible $ 19,343. If you had invested at the start of that month, when Bitcoin was worth $ 10.859, you would have earned 78% to the point.
As for the worst times to buy Bitcoin, those have arrived in abundance lately as well. For example, on February 3rd, Bitcoin was trading at $ 9.224. By February 5, it had dropped to $ 6,914, a two-day decline of 25%.
Investors would have been in even worse condition if they bought Bitcoin a few days earlier. As of January 28, Bitcoin was worth $ 11.694. When it hit the low of $ 6.914 on February 5th, it represented a 40% decline in just over a week.
If you were a long-term investor in Bitcoin who held onto the investment for, say, a whole year before the sale, 2017 would have been a fantastic time to do it. Bitcoin was trading for only $ 985 on January 1, 2017 and up to $ 13.860 on New Years. This is a return on investment of 1.307%.
And if I had bought it at the beginning of 2017 and somehow managed to time the market to perfection and sell it at the all-time highs on December 16th – when Bitcoin was at $ 19,343 – your return would have been crazy about it. 1.863%. In other words, if you bought $ 10,000 in Bitcoin on January 1, 2017 and sold on December 16th, your gross profit would have been close to $ 190,000.
