Black Friday is an informal holiday observed on the 4th Friday of November. As it is a time close to the winter holidays, Black Friday is also a perfect time of intense shopping for the big Christmas holiday. During this period, stores offer promotional sales to customers as shopping for groceries and other holiday-related items intensifies.
The question is how does Black Friday affect cryptocurrencies and is it a good time for cryptocurrency holders? We will dig into the relationship between this period and cryptocurrency to see how the industry is affected by the period.
Historical Cryptocurrency Performance: Bitcoin Case Study
We would like to look at how the cryptocurrency market generally performs around Black Friday. However, since Bitcoin largely determines the price movement of altcoins, we will use it as a case study in this article.
How Has Bitcoin Done Around Black Friday?
Black Friday comes after thanksgiving, a holiday that is widely observed in the United States. During this time, Bitcoin has done well generally. There may be a few exceptions when the performance was not so great, but the year 2020 is a classic example of Bitcoin’s phenomenal performance around this time.
The cryptocurrency has gotten to over $18,000 recently, reaching a 3-year high. The price is expected to make its way even higher, as analysts say there is no major resistance ahead until the coin hits the all-time high ~$20,000 recorded in 2017. The 2017 bull market that resulted in this all-time high started in September and then peaked in November and December around the time when Black Friday is observed.
Bitcoin’s first bull market in 2013 also became full-blown in November of the year after a slow increase in price from the first quarter. Bitcoin opened November 2013 at $194, but by the end of the month, the price had hit a new all-time high of $1,113. This made it the year referred to as “the year of Bitcoin.”
To further buttress the fact that Black Friday coincides with Bitcoin’s big price moves, a Citi Bank analyst recently projected that Bitcoin could reach $318,000 by December next year. Even if Bitcoin fans have been optimistic about its future, they may not have expected it so soon, and the peak is to be reached around Black Friday.
Ethereum (ETH) is not left out of this euphoria in any way. It is the altcoin that has consistently followed Bitcoin’s upward pattern historically, and this year is no different. The second-largest cryptocurrency is only a few dollars away from reaching the year high of $477 at the time of writing this article. Of course, this movement is likely to go on as long as Bitcoin continues to break limits. This means that the price may explode even more than Bitcoin in the coming weeks, as the coin is said to be highly undervalued, given that it supports DeFi and is the biggest smart contract and dApp ecosystem in the space.
This makes the Black Friday period a perfect time for crypto holders who already have these cryptocurrencies, not just because they will make a ton of profit but that they can also use their profits to engage in Black Friday shopping for the coming Christmas. Surprised? You shouldn’t be. Cryptocurrencies are now used to pay for goods and services, as adoption grows, and more merchants continue to develop an interest in cryptocurrencies as means of payment.
Do you hold Bitcoin? Are you going for Black Friday shopping? You can pay with Bitcoin and receive groceries and other items in return. Below is a list of the most popular stores where you can pay for things using your Bitcoin during this period.
Microsoft, the leading Windows computer software manufacturer, has been accepting Bitcoin as payment for Xbox Store since 2014 for those who wish to buy Xbox store credits. If you have Bitcoin and you are a fan of Xbox, you can use it to make your Christmas a memorable one.
The household name when it comes to coffee, Starbucks is one of the most popular stores that accept Bitcoin. This has become a reality with the launch of the Bakkt app, which you can use to pay for your Starbucks coffee.
This is a website where you could buy airtime or data for any supported network from any part of the world. This website accepts Bitcoin as payment for this service rather than fiat, so why not try it out?
KFC in Canada announced that accept Bitcoin as payment for their services in 2018. If you are a fan of chicken and you live in Canada, then you should try using some of your Bitcoins to pay for chicken there during the coming holiday season.
Whole Foods is a USDA-certified grocer based in Austin Texas, United States of America. Its partnership with The Winklevoss’ Flexa spending app Spedn opened doors for crypto enthusiasts to be able to pay for groceries from the store using Bitcoin, and you should try it out.
These are just a few of the stores where Bitcoin can be used to make purchases. The growing demand for cryptocurrencies, such as Bitcoin, and the fast depreciation in the value of fiat currencies is expected to attract more merchants to the crypto industry. As Bitcoin has gained such a massive price around this time, you should experiment with using some of your profits to directly pay for stuff so that you can have a feel for the power of crypto.
Bitcoin has shown that it is positively correlated with the Black Friday period. This year is a typical example, and it seems that Bitcoin holders will be celebrating Christmas in style. They can, therefore, have even more fun buying things directly with their crypto and helping to expand the mainstream adoption.
Featured image: clark.com