Topic: How important is data of historical returns on bitcoin for future investment ? (Read 102 times)

I don't know where you check it but I introduce you Case Bitcoin (useful) to check Bitcoin historical data, returns and in comparisons with other assets.

I also check Bitcoin price with previous halvings, bull and bear cycles to know how Bitcoin price reacts to halvings, before and after as well as how its bull run usually last. It help me to believe that Bitcoin halvings have good effects on Bitcoin price. It helps me to hold my bitcoin very strong because I know good price will come with halvings.

It keeps me to maintain or even strengthen my belief in Bitcoin.

Not just in bitcoin market though, I mean most commodities are look at how it's past performance does and then see if they can predict the future. So if we are going to equate in bitcoin market, we can look back and see how big the previous bull run is, from the lowest low of about $3k in the pandemic era (March 2020), so how massive it was during it's peak bull run of 2021 at $69k.

So yeah, very important gauge for most crypto investors, so the lowest low or bottom for this year's bear market is $15,500 (Terra Luna and FTX collapse factor), and maybe we can plot as how big the bull run will be in 2024-2025.

Bitcoins historical data is the best sales pitch anybody can use to convince new crypto enthusiasts or investors on what potential lies ahead should they want to get onboard the bitcoin boat.
You know what they say, talk is cheap and if you don't have the numbers to back your claims, it merely remains as a speculation so to make you work much easier, you can use this data which is readily available.

Every investor has unique thoughts and investment strategies. Personally, I consider the historical performance of the chart as an important factor. While it may not be the sole determinant for investment decisions, it plays a significant role when deciding whether to invest in Bitcoin or any other cryptocurrency.

We know from the past history that there are market cycles tied to halvenings, they start with bull run after a halvening and then a huge crash and a bear market comes. But it's not a rule that they will repeat with every halvening, because the conditions change. The more people aware of the pattern, the more likely it is to break. Also halvenings have smaller and smaller role, because most of the coins are already mined.

Another important point in Bitcoin history is how it reacts to certain key events. For example, is showed a lot of correlation with the US stock market and it flash crashed when the Covid started. It's good to keep this in mind, because if similar events repeat soon, the price action could look similar. But you can't blindly rely on historical analogies and must also take into account the present factor.

Going by the historical performance of Bitcoin, every year the price of Bitcoin has not been the same, even in every halving year since Bitcoin was built. Going through the price history before investing will not really give you the results you need. For example, if someone really takes Bitcoin because the price was $60k in November 2021 and invests in it, thinking that the price will again reach $60k in the November month of this year, they can get disappointed. So, the historic price is just more of a reference for me on how well Bitcoin has performed since the day it was built, when it got traded on the first exchange, and how much. I just see it as something that gives me courage on how far Bitcoin has come, given the price drop and spike.

Knowing what has happened in the past can help you get better prepared for what can happen in the future. The information the past holds is relevant to derive some kind of consolation and encouragement. if you don't know history, you will just be living into the future with no idea of what has been, so when something happens, you will not be able to know if has happened before or if it is something new, that is why checking historical returns is important.

Is important to understand bitcoin behavior in the past to make decisions for the future, bitcoin had some crazy bumps in a short period of time, and if we follow that trend we could end with big profit in the next ATH. But for that we need to hold and be patient, because taking out our investment after a low multiplier like x4 could be a waste if we know how people ended in the past with an x10 or x50. It's about paying it smart and following the trend.

That's why is important to understand the data of historical returns, it's important information to take decisions for our investment.

Historical returns data is important on Bitcoin because it can give us a pattern of how the Bitcoin market behaves.  Although it does not tell the future result of Bitcoin it is indicative of the Bitcoin market movement and may help us to have a more accurate way of predicting Bitcoin's future market movement.

It was stated the data on the historical returns of Bitcoin can be a useful tool for investors but it needs to be used and synced with other variables that can affect the Bitcoin market. In short historical returns are used by investors to forecast the future returns of Bitcoin in certain conditions. With this investors can easily identify the next trend of the Bitcoin market if something happens since data on how the market moves in that event can be seen in the historical returns of Bitcoin

If anyone is interested in how it works, Historical Returns: Definition, Uses, and How It's Calculated

Of course we have to look at it's historical returns and predict that future. But that's it, just to predict what the future will hold for us. But it doesn't mean it will be a "exact" science as we all know that there are a lot to factors and even the best prediction modelling in the past didn't hit it's mark (remember S2F modelling?)

You have have to go long in bitcoin investment, regardless of what past historical records it will show. We've learn from it, used the extrapolate data, but you have to buy and just accumulate and see how big or small your potential profits is, in the future.

Some uses historical data for interpretation of future movement too. Somehow it helps to align with the chart or parameters/indicators that they are seeing but some are purely relying technically. This could be of help as it was proven that historical events on price chart happenend again in someway on bitcoin price. Like the date of halving we knew that after this event bitcoin pumps so might be a real deal to incorporate historical data too on your analysis.

The first and necessary step to take after learning about bitcoin is to dive into the historical  aspect and learn from how it begins to where it has being today, also study the major bullruns for all time high and the all time low and the duration for each, study the chart and compare the statistics from previous years as well, learn from thise who had invested earlier before now and when they set in, the duration they hodl and the things they always ensure to look after, the wallet used and learn from experience, there will always be a season for the peak of the market during Halving after every four years, the target is on bullrun when we attain a new all time high.

What do you mean by historical returns? Are you referring to historical data of the price ranges that Bitcoin has achieved? If that's you question then of course I do check the Bitcoin chart of many months and I do proper technical analysis before investing into it because it doesn't make sense to invest in bull market due to huge pressure on the crypto-currency, and when it faces the bear market once again then the whole investment is locked for many more months.

I check the Bitcoin charts of different time duration before making my mindset about investing in it. First of all, I check months charts to know that how's the condition of the market, and after that I check weekly charts, and in same manner I check daily charts and then I if my technical analysis is completed, and then I have a strategy that I follow. On the basis of that strategy I place limit buy orders on different price ranges.

I have been doing the thing for a long time, and so far it has been very helpful in generating profits for me.  I'm sure those who Hodl for very long time duration doesn't follow the charts because they just check the current price of the coins and purchase as much of it as their financial condition allows them. Those people are believers that Bitcoin could cross 1$ million in price within few years and that's why they invest and forget their investment.

Bitcoin's historical performance data can be useful for evaluating the past performance of this cryptocurrency and gaining an understanding of its growth patterns over time, if the intention is to invest by trading otherwise if your goal is to accumulate ( like I do) then everything else is superfluous.

How important is data of historical returns on bitcoin for future investment ? Do you check historical returns and make judgement based on that to [plan future investments in bitcoin ? Or it helps you just an encouragement to keep investing in bitcoins regularly.