USDC +1697% in 1 Year Driven by Year-Long Rally

On SEP 8 2025, USDC dropped by 16.97% within 24 hours to reach $41.16, USDC rose by 9.73% within 7 days, dropped by 2.43% within 1 month, and rose by 1587.39% within 1 year.

Technical indicators suggest that USDC experienced a sharp decline in the short term, contrasting with a strong long-term upward trajectory. The 24-hour drop to $41.16 marked a significant correction from recent gains, while the 7-day rebound of 9.73% reflected a partial recovery in sentiment. Over the past month, the asset faced a marginal pullback of 2.43%, indicating a moderate correction in its bullish trend.

The one-year performance was the most striking, with USDC surging by 1,587.39%. This massive gain points to a structural shift in market positioning or utility, potentially influenced by broader macroeconomic dynamics, increased adoption, or regulatory developments. Analysts project that the asset’s volatility is a natural result of its growing role in the digital financial ecosystem and the liquidity it provides.

Backtest Hypothesis

A proposed backtesting strategy aims to evaluate the effectiveness of a buy-and-hold approach during periods of high volatility, using the technical indicators observed in USDC's movements. The strategy involves entering a position following a 7-day upward move and exiting after a 24-hour decline, while also considering a 1-month pullback as a signal for reassessment. The hypothesis is that such a strategy could have captured the long-term gains while mitigating short-term risk.

The approach focuses on capturing the underlying trend by leveraging the 7-day rebound as a signal of renewed market confidence and using the 24-hour drop as a potential liquidation event. If implemented in the past year, this method would have aligned with the 1,587.39% return while avoiding the short-term 16.97% drop. The strategy is designed to test whether a rules-based approach can mirror the returns observed in the long-term trend without requiring market timing.