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Bitcoin's Value Has Increased On Valentine's Day Since 2015

Bitcoin's Value Has Increased On Valentine's Day Since 2015

Bitcoin and other cryptocurrencies have repeatedly enjoyed surges in value around the romantic holiday

Simon Catling

Simon Catling

Stuck for the perfect Valentine's Day gift for your significant other? Perhaps you might want to consider investing in Bitcoin - after all, its value tends to increase when the romantic holiday rolls around.

Valentine's Day seems to be a bit of a blessed time of year for potential Bitcoin investors as the cryptocurrency has now repeatedly surged in value in the run-up to the day of romance.

This year has been no different, with Thursday's news that the value of Bitcoin had reached an all-time high of $48,000, thanks in part to high profile support from the likes of BYM Mellon, Mastercard and Tesla - the latter of whom invested $1.5 billion into the cryptocurrency.

PA

It turns out that every Valentine's Day dating back to 2015 - bar 2019, which bucked the trend - has seen a positive return for Bitcoin investment, as well as those investing in other cryptocurrencies such as Ether and XRP.

The highest daily return on 14 February yielded a daily return of more than nine percent, occurring in 2018, but it has averaged at a healthy 4.73 percent over years.

Similarly XRP has posted an average return of 3.28 percent over the previous five Valentine's Days, boasting its highest return also in 2018 with 10.15 percent. The correlation of the five Valentine's Day returns since 2015 between Bitcoin and XRP is over 65 percent.

Ether, another of the main cryptocurrencies had its highest daily return around 2017's Valentine's Day, of 14.5 percent - although it's success hasn't been as consistent, posting negative returns in 2016 and 2019 for an average increase of 3.92 percent spread across Valentine's Days since 2016 when it was first recorded.

PA

This all means that all three coins had average returns over three percent.

If an investor only bought these cryptocurrencies on Valentine's Day each year, they would retrieve a total return of over 24 percent in Bitcoin, 20 percent for Ether and 16 percent for XRP.

According to traditional market analysts, most studies identify abnormal returns occurring the day before the holiday rather than during the holiday or after.

If you take these positive scenarios into account then, it means that based on the previous years - as well as the bullish trends of the Bitcoin and altcoin markets - investors to would be at their best investing in the period before the holiday and hold off on spending their Bitcoin until after the holiday.

Thanks to recent high profile support, some forecasters see Bitcoin rising as high as $55,000 or $60,000 by the end of 2021, while others say it could even reach $500,000 per coin one day.

Featured Image Credit: PA

Topics: Bitcoin, Money, Valentine's Day