The world’s largest digital asset manager, Grayscale Investments, is convinced that attempting to time the Bitcoin (BTC) market is quite often a fruitless endeavour.
In a recent publication titled “BTC’s Hidden Risk: The “Out-of-Market” Opportunity,” the company noted that multi-year returns are highly dependent on a short window of high performance days.
Timing Bitcoin is a losing game: Grayscale
Citing Blockchain media company ME Group, Grayscale says Bitcoin gave about a 225% return on investment (ROI) in the past 3 years, as compared to the less volatile Nasdaq, which gave 109%.
However, most of the returns came from just a few days. Removing the top 5 days caused returns to fall to 95%, removing the top 10 days made returns dwindle to 27%, and removing the top 15 days led to an 11% loss.
Quarterly returns and current price analysis
Many traders now anticipate a bullish Q4, but Bitcoin is facing clustered resistance between $84,000-$87,000, with more hoops to jump at the $88,000-$89,000 range.
At press time, BTC was trading at $85,821, after slightly pulling back from the $86K hurdle.
The parting shot
Grayscale concludes by saying long-term investment is the best strategy for assets like Bitcoin, which can experience massive price swings in either direction.
Additionally, while the most profitable days are few and unpredictable, missing out on them vastly and negatively impacts yields. This last remark further builds on the long-term strategy that Grayscale advises.
Was this writing helpful?
Story Ends Here
Trust with CoinPedia:
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Read the Next News
