The Halloween Effect and Bitcoin Whitepaper

Region: Europe
Oct 28, 2021, 10:00:00 AM Published By Wirex Team

Trick or treat? Halloween might be a scary time of year for some, but for crypto investors, it’s a much more exciting time of year.

Whether it’s the ‘Halloween Effect’, or the anniversary of The Bitcoin Whitepaper being published, there's a few reasons why the crypto world wants to celebrate the end of October each year.

When was Bitcoin Created?

The Bitcoin Whitepaper was published by Satoshi Nakamoto on the 31st October 2008. With BTC being the first crypto to be developed, for many, Halloween 2008 marked the beginning of cryptocurrency, and this day will be celebrated each year as BTC’s birthday.

In fact, some people refer to Satoshi as the ‘ghost’ of Bitcoin; having created the first crypto, he’s the founding father of the crypto movement that started the digital economic movement. ‘Bitcoin: A Peer-to Peer Electronic Cash System’, outlined details of a tamper-proof, decentralised peer-to-peer protocol like never before. Endeavouring to reduce cost, increase speed and make transactions more transparent than ever, it explained the ‘Proof-of-Work' system used to verify transactions created on the network by miners.

As BTC approaches its 13th birthday this year, since then, it’s grown to have the largest crypto market cap in the world!

To find out a bit more about BTC, check out our spotlight blog post.

Why not celebrate the occasion by buying some BTC yourself?

What is the Halloween Effect?

The Halloween Effect’s origins go back far beyond the crypto space. Historical research suggests that the winter months are generally a better time to invest in traditional assets. The reasons why is highly debated, and some suggest it may be linked to the fact that people used to begin their summer holidays in May, leading investors to sell their investments.

Ever heard the term “sell in May and go away”? Well, it suggests that investors should sell their assets at the end of May, and then buy again in early November, and there’s plenty of evidence from researchers around the world suggesting it’s a highly dependable trading strategy.

So whilst May onwards might see a dip in the markets, November marks the start of a rise in prices as people look to buy. In fact, some suggest that this trend has strengthened as time has gone on.

How does the Halloween Effect Impact Crypto?

There’s evidence to suggest that The Halloween Effect exists within the crypto space as well. On Halloween 2015 (October 31st), the bear market finally came to an end, and between then and May, there was a huge rise in the price of BTC, as well as many other cryptos. And we saw this pattern continue for some of the subsequent years – spooky or what?!

However, there’s many skeptics out that there that believe that the theory isn’t accurate, and with a volatile market like cryptocurrency, it’s hard to know what the impact of Halloween will be in the future.

So whether you’re a believer or not, why not buy your favourite token this Halloween and see for yourself?