Bitcoin

In these last months of 2020 the price of Bitcoin is following a trend similar to that of 2017?

At the end of September 2017 the price of BTC was about $4,300. After one month it had already risen to over $6,300, that is, during the month of October alone it had risen by 47%.

But the real boom started in November, so much so that the month ended with a price of $10,400, and a 63% gain, while in December it peaked at $20,000, and then closed the month at $14,800, a 42% gain compared to the end of November.

Well, the trend of 2020 is actually different, although in some ways similar.

At the end of September the price was $10,800, while October closed at $13,400, with a gain of 24%. In other words, October 2020 was a month of sustained growth, as was October 2017, but this was about half that of three years ago.

November 2020 has not yet ended, but taking as reference the first 12 days of the month, the gain compared to the October closing was 20%, while in 2017 there was even a 7% drop in the price of bitcoin in the first 12 days of the month.

Even comparing the performance of the first ten months of the year there is no match.

On October 31, 2017, the gain compared to January 1 was already 538%, while in the same period of 2020 it was 88%.

There are instead more similarities with 2016, the year of the second Bitcoin halving (in 2020 there was the third one).

The price of BTC at the end of September 2016 was $608, then rose to $698 at the end of October, with a gain of 14%, and to $703 on November 12, with a further gain of 0.12%.

Compared to the beginning of the year, the price at the end of October had increased by 60%, with a performance only slightly lower than in 2020.

Therefore the trend of the bitcoin price in these last months of 2020 seems more similar to that of the last months of 2016 than to the end of 2017.
The price of Bitcoin in 2017: the speculative bubble

On the other hand, at the end of 2017 a gigantic speculative bubble had been triggered on the price of bitcoin, which literally burst after reaching an all-time high on December 17, making the price fall back to $6,000 at the beginning of February 2018, at the levels of early November 2017.

At the end of 2016, however, only a mini-bubble was formed that brought the price back above $1,100 on January 4, 2017, and then traced momentarily up to $780 on January 11, and then back up again.

It is not to be excluded that even the end of 2020 could lead to a similar situation, with the price that could quickly return to its usual high, around $20,000, and then retrace.

Anthony Pompliano, who tweeted, is also convinced of this:

„There have only been 12 days in the history of Bitcoin where the price has been higher than today. Soon they will be zero“.