The researchers from the International Hellenic University and Democritus University of Thrace in Greece have conducted a study supporting the “efficient market hypothesis” (EMH) for Bitcoin trading. They claim to have developed an “optimal model” that outperforms the hodl strategy by nearly 300% in simulated crypto portfolios. The EMH theory suggests that an asset’s share price reflects its fair market value and all relevant market information, making it impossible to consistently outperform the market through timing or intuition. However, opponents of EMH argue that some investors, like Warren Buffet, have successfully beaten the market. The research team in Greece applied EMH to cryptocurrency trading as an alternative to the hodling approach, and their optimal model beat baseline returns by up to 297%. It is important to note that the study was conducted using historical data and simulated portfolio management.
