JP Morgan Publishes Research Data: Who Hodles In Bitcoin, Earns Or Trades?

Data from a study by JP Morgan Asset Management shows that 90% of Bitcoin’s growth since the beginning of 2023 is due to just nine key trading days.

Jp Morgan Highlights Important Trading Days in Bitcoin

The majority of these 200 trading days were neutral and the market was slowly pulling back after incremental growth.

The idea of a handful of “best days” that provides the majority of an asset’s growth is not a new concept and applies to other markets as well.

For example, an investor who invests in the S&P500 index from 1999 to 2018 would have earned an average annual return of 5.62%. But if the investor misses the top 10 trading days during this time, the annual return will drop dramatically to 2.01%.

Missing more of the best performing days leads to even more dramatic results. If the same investor misses the top 20 trading days, his annual return will turn negative at -0.33%.

If they miss the top 30 days, the return will drop to -1.97%, and if they miss the top 40 days, the return will drop to -3.35%. If they had missed the top 50 trading days, their annual returns would have been as lousy as -4.45%.

These data underscore a common saying in the financial industry: “Spending time in the market is more important than timing the market.”

Traders who try to time the market, that is, buy low and sell high, often miss the best days. But those who invest longer are more likely to reap substantial returns.

In the case of Bitcoin, this means that while most trading days may seem uneventful, a few key days can have a significant impact on investment returns.

So, reaching $35,000 for Bitcoin may not be as easy as one might think, but the key in the crypto market is to seize these explosive days.

In other words, it is seen that long-term investors make more profit, especially in the crypto money market.

*Not investment advice.