When it comes to practically any framework not involving past results, we live in a world of probabilities. Some frameworks are relatively linear and deterministic; for example, temperature shifts amid changes in the season. Other frameworks are non-linear and probabilistic, such as the odds of getting a four-seamer on a 3-1 count in baseball. Naturally, then, there is a temptation to bid up downtrodden securities like Bit Digital (BTBT) given certain extreme scenarios.
The thinking goes like this. In everyday market situations, the median price action of a security may naturally ebb and flow within a range of ±1%. For BTBT stock specifically, the average weekly performance since March 2020 has been a positive return of 2.47%. So, the assumption is that if BTBT suffers significant volatility — such as last week’s loss of 20.24% — there’s a chance for a big rebound.
