Weekly Cyclicality in Cryptocurrency Prices

An artist’s depiction of Hone Capital’s office.

Hypothesis

  1. Price increases of BTC, ETH, and LTC tend to be greater on Friday, Saturday, and Sunday (when casual interest gets spread and converted into action).
  2. Price increases of BTC, ETH, and LTC tend to be smaller on Tuesday, Wednesday, and Thursday.
  3. Price swings (in general) will be greater on Friday, Saturday, and Sunday (sentiment being magnified by casual investors).

Findings

Chart 1. Green is relatively high, red is relatively low. Treat all rows separately.
Chart 2. Obvious conclusion when comparing with Chart 1 is that there’s a lot of confounding outliers. Who would have thought?
Chart 3. Each bar represents the range between the 25th percentile and the 75th percentile, with the middle line illustrating the median daily price change.
  • Differences in demographic mix, including age, occupation, investment size, and nationality
  • Impact of mainstream endorsements in amplifying or dampening opinion among the demographic mix (and when those endorsements are typically announced)
  • Magnitude of market manipulation by whales or institutions
Chart 4. A numeric depiction of the crypto rollercoaster.

Data

This feeds straight into Excel as a nicely formatted table with no clean-up necessary.
  • Investigate the bottom and top deciles (i.e. the top and bottom 10% of percent changes in price).
  • Measure the absolute value of percent changes in price, considering just the magnitude of movement.
  • Add nuance to correlations between cryptocurrencies: for example, are large movements in prices correlated differently than small movements in prices?

--

--

--

VC at GFC. Part engineer, part designer, part social scientist, part wanderluster. Global citizen.

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Bitcoin Fees Explained

How to claim Calamari Tokens in Polkadot JS

The true nature of cryptoregulation in the world

ImpactNFT Exhibition Hong Kong

An emotional guide to crypto trading (why paper trading is useless)

The First KList Airdrop Event

The financial industry is filled with many different types of entities that conduct transfers…

Blockchain Today Weekly Digest

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Kendrick Geluz Kho

Kendrick Geluz Kho

VC at GFC. Part engineer, part designer, part social scientist, part wanderluster. Global citizen.

More from Medium

3 Ways To Use EMA In Trading (with $BTC example)

Crypto Trading Edge — You HAVE to Have One

How ONE’s trading experience just got easier?

Beginners Tips to Trade Ethereum Successfully