Bitcoin

What is the "January Effect" in the Stock Market and How is it Related to Bitcoin?

The January Effect is a term used to describe the phenomenon in which share prices (especially of small companies) tend to rise during January. This effect is often attributed to psychological and seasonal factors, such as:

 • Reallocation of portfolio: Investors sell losing positions at the end of the year due to taxes, and then reinvest in early January.

 • Optimistic sentiment: The beginning of the new year brings optimism and increased shopping.

Although this effect is traditionally related to the stock market, similar patterns can be applied to the Bitcoin and crypto markets.

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