The Seasonality of Bitcoin

Abstract

The cryptocurrency market has grown significantly and is no longer considered a small or negligible sector. As the crypto market continues to evolve, researchers are increasingly interested in conducting in-depth analyses, for example, one of the most fascinating phenomena in the world - seasonality effects. We examine the distribution of the daily returns, proposing a simple seasonality strategy based on holding BTC only for two hours per day. Moreover, this paper extends research on potential seasonal patterns related to Bitcoin, focusing on whether these patterns are influenced by factors such as current market trends or the level of volatility in the market.