The Hong Kong Bitcoin ETF launched with lackluster performance, mirroring the post-halving slump bitcoin has had the last 2 weeks.
But nothing is out of the ordinary.
Analyst Juan Leon pointed out that historically bitcoin’s
price during the month after a halving is weak.
“On average, the price of bitcoin has risen 19.03% in the month preceding the halving, versus 1.70% in the month following the halving.
If you zoom out a bit further, a different picture emerges...
Zooming out, however, the reverse is true: On average, bitcoin has risen 3,224% in the year following the halving, versus 185% in the year preceding it.”
For those new to bitcoin, like those who started to dip their toes in with the ETF approvals, it's easy to lose emotional control with downside volatility.
It's helpful to
know that with bitcoin this is normal, 30%+ drawdowns even during a bull market, is par for the course.
Stomaching the down-swings is the price of getting to participate in the upside volatility.