After years of January being the worst performing month for Bitcoin investors, the cryptocurrency has had its best performance in nearly a decade. Is the Halvening responsible?
By Matt Hussey 4 min read Feb 1, 2020
Bitcoin has just recorded its best January performance in seven years. The cryptocurrency started the month at $7,208, according to data by CoinMarketCap and finished the month yesterday on $9,395. That’s a gain of more than 30%.
That last time Bitcoin performed this well in the first month of the year was in 2013, where it saw a 54.50% rally.
Bitcoin’s price performance in January over the years has been a turbulent affair.
Looking back over other years, Bitcoin’s January performance has been split equally between rises and falls. While 2013 was the currency’s biggest gain, 2015 saw the coin’s price drop 32% in one month, and in 2018, by 29%. But this year is different. In fact, Bitcoin’s price came just short of beating its three month high of $9,488 recorded on November 4. So what’s got the price heading in this direction? There have been several reasons.
Earlier in the month, Bitcoin watchers pointed to the US’s sudden drone strike against one of Iran’s leading generals as the reason for Bitcoin’s steady climb out of its low point of $6,597 recorded on December 17.
Bitcoin looks primed to set a new three-month price high. IMAGE: CoinMarketCap.
Within hours of the attack, the price of Bitcoin (along with oil prices) shot up to $7,339. While traditional assets like oil and gold see price rises during periods of uncertainty, Bitcoin has been historically less predictable when it comes to similar geopolitical events. Instead, several industry leaders—including e-Toro’s Mati Greenspan and Matthew Graham of Sino Global Capital—believe the currency’s price is growing because Iranians are buying up Bitcoin as the political environment heats up.