Tom Lee, the Fundstrat co-founder has been on Twitter warning people against panic selling their bitcoin. He reminded everyone that the majority of bitcoin gains come in the ten best trading days of the year.
When are the 10 best days?
This is something we all want to know. Cointelegraph explains it as follows: “In any given year, the vast majority of gains in Bitcoin price come in just the ten biggest trading days, according to this rule. During the last bull market of 2017, price rose an incredible 1,136% in those ten days. But even during the bear market of 2018, the best ten days saw an overall gain of 66%.”
Apparently, if you exclude these magical 10 days, the story of bitcoin looks rather different. “In most years since 2013, those 355/6 days have seen mainly quite considerable losses,” Cointelegraph says. It adds, “Whilst 2017 did see gains of impressive 232%, 2018 suffered a loss of 140%. Similarly, 2013 and 2014 have seen losses of 199% and 133% respectively.”
The upshot is that if you exclude the ’10 day rule’, bitcoin has seen annual losses averaging 25%.
Lee also makes a very valuable point that we should all remember: don’t be emotional about your trades. He asked, “Are u that good at trading?” This seems to imply that holding is a better strategy than trading. However, Lee does also suggest that the crypto winter may be back, and suggests that even in bull markets there will be a large number of heavy loss days.