Bitcoin: A life in crises

Abstract

In this study, we investigate the BTC price time-series (17 August 2010–27 June 2021) and show that the 2017 pricing episode is not unique. We describe at least ten new events, which occurred since 2010–2011 and span more than five orders of price magnitudes ($US 1 –$US 60k). We find that those events have a similar duration of approx. 50–100 days. Although we are not able to predict times of a price peak, we however succeed to approximate the BTC price evolution using a function that is similar to a Fibonacci sequence. Finally, we complete a comparison with other types of financial instruments (equities, currencies, gold) which suggests that BTC may be classified as an illiquid asset.