Yesterday the unexpected happened. After the continuous growth for several months, Bitcoin dropped down by staggering 30%. A lot of experts say, that this has to do not only with lots of speculations on the market, but that the recent downfall of this cryptocurrency can be assigned to the infamous January effect.

The January effect is a seasonal increase in stock after the downfall that usually comes in the end of December. Around Christmas and New Years people stop thinking about stocks, take days off to be with their family and generally are distracted from money questions. It is the time to spend money, not earn them. This rise is attributed to the rise of prices, that comes after the December downfall. 

Said effect was generally described after the study of stock market behavior in the 1904-1974 period. The study says, that usually in January average return of stock is 5 times greater than in any other month of the year

By observing the described effect, one can learn how to benefit from market’s seasonal downfalls and uprisings. With all what’s going on in the world in these last days of 2017 it is quite impossible to say, what’s going to happen to market once they open after all the festivities are over. It is predicted, that APPLE stock is going to hit $1 trillion market cap. Experts also say that this year is going to be good for FACEBOOK and TESLA and advise to observe DISNEY stock, as it has known both drops and rises this year, but, after releasing one more Star Wars movie and having several big projects in the making it can be an attractive money investment.

It is not advised to only look at big corporations’ stocks and wait until USA’s Internet neutrality scandal is over and only then returning to trading after the holidays.