Will the Bitcoin price rally continue in the second quarter? 7 Main considerations (statement)

Will the Bitcoin price rally continue in the second quarter? 7 Main considerations (statement)

It is April and the Bitcoin price has been around the $ 28,000 mark since March 23. This is a rapid price rally after he started $ 23,500 in March. Bitcoin started the new year with a lean $ 17,000.

The question for crypto investors and dealers is now whether BTC looks expensive at this price or is ready for a further upward movement in the next quarter or the rest of the year.

Two fast short -term price factors

An interest bull -hint is that the royal crypto is now heading for a month with historically strong seasonal price gains. In the past 10 years, BTC has recorded six times profits with an average return of over 17 %in April.

With the increasing price correlation between Bitcoin and stocks (more on this below), April is all the seasonal. The S&P500 Index recorded monthly profits of 2.6 % in eight of the April months of the past 10 years (strong for the wide benchmark).

A declining short-term factor that could dampen the April effect is the appearance of a large Wal seller. This is the government of the United States, which sells 41,000 seized bitcoins. All sold at today's market prices, the sale of Wal size could lead to an increase in offer of USD 1.1 billion.

Here are seven other key factors that must be taken into account in the Bitcoin price observation when the markets move.

The collapse of CEFI in 2022 was bullish for Bitcoin in 2023

While the spectacular breakdown of the crypto companies CEFI (Centralized Finance) in 2022, prices raised the prices for months, he now helps BTC. The bottom line is that everything that happened last year proves the basic thesis and the promise of Bitcoin.

Now the investors or the latest round of new crypto investors learn for the first time: Bitcoin was concerned with having a reliable, decentralized, transparent basis for a financial system. To build all of these unreliable, centralized and non -accountable products on it failed.

This leads to the same weaknesses, weaknesses, threats, dangers and risks, for the solution of which Bitcoin was originally introduced in 2008 for users of financial services.

Ultimately, the crypto financial crisis from 2022 FTX Exchange, Alameda Research, Celsius Network, 3 Arrows Capital and many others brought them to a standstill. It also moved the Gemini Trust Company, the Digital Currency Group and others. But the robust market rally proved that all of this was already priced in Bitcoin in January.

The three big bank runs in March

When a trio of Tradfi banks with crypto engagement failed in March, the market was enthusiastic. While the customers of the Silicon Valley Bank were coming up to maintain their deposits while supervisory authorities and buyers approached them, the Bitcoin price shot up from around $ 25,700 to $ 25,500 within four days.

As a result of the re -evaluation of the industry by the market after the collapse of CEFI, the bankruptcy of Silicon Valley Bank, the Signature Bank and Silvergate rocket fuel for the price.

In Europe, a banking panic in Europe was underway, as it took place in the United States. Alvaro Sanchez writes from Madrid for El Pais and reports that the bankrupt

"For crypto investors, the banking panic in the USA and Europe confirms its conviction that in the future all financial intermediaries will be gone and there will be a decentralized system in which everyone can move their money without the need for banks."

Bitcoin exchange correlation more than ever

The correlation of Bitcoin with stocks increased in the course of 2022. The timing of the crypto industry's interrogations matched the macromarkt trends. In times when stocks rose in the price, cryptocurrencies rose in step. The same was true for times when the stock prices fell. Cryptocurrencies would rather fall in tandem.

The only difference between the stock market markets for cryptocurrencies and the stock market from the perspective of the diagram was that the cryptocurrency in its portfolio was moving like the shares, but with leverage. This correlation of the Bitcoin-NasaQ share prices stopped during the recreation rally at the turn of the year, the consolidation phase and the rally in March.

In addition, the increasing sensitivity of the prices of digital assets can be the fault of institutional investors compared to technology shares and macroeconomic data.

"The recent increase in the correlation coefficient between the crypto-asset market and the S&P 500 could reflect the increased participation of institutional investors." - reads a current study.

But all in all, the correlation seems to be overwhelming bullish. While Bitcoin could lose some of it if all institutional investors get it that can get it, then it goes to the moon, right? The increase last year by all of these different investors who moved the Bitcoin price like the Nasdaq is an interest bully sign.

The Bitcoin adoption continues

With a few exceptions, where it was forbidden, the introduction of Bitcoin is growing rapidly worldwide in 2023. While many of the early users of Bitcoin are developers of the technology industry in the first world countries, many are also developers of the technology industry in developing countries that show the way for their people.

Bitcoin is also used by webaffins in countries in which the local currency is drastically devalued by state monetary policy. In the meantime, President Nayib Bukele from El Salvador decides to put control over the money power to the market to capitalize on his country and enrich his people.

critics mocked the Bukele government because it pushed to officially make Bitcoin a legal means of payment. But newspaper writers and bloggers in the United States are not those who are responsible for Salvadorians.

As it turned out, El Salvador recently paid back the first of two $ 800 million bonds. The BTC Gambit looks pretty good for the finances of the Central American nation in this quarter.

BTC bases and community grow 2023 in interest bullies.

The BTC bases are strong at the beginning of the second quarter of the year. Bitcoin's hash rate rose to another record high at the end of the first quarter. The hash rate in the network was 350 million TH/S at the end of March. It is the measure of the miner power that ensures the network.

miner earn earnings by first solving the latest hash problem and claiming the block reward. They also earn income from fees to forward transaction orders to the rest of the network. The corpulent growth of the platform at this most fundamental level of its infrastructure is very optimistic for the market price of BTC. Your income also rose in March.

These are some of the best informed market participants. In addition, its business model is most exposed to the risks of downward cycles on the crypto stock market market. In addition, it is rewarded very profitably during market cycles. More machines that are now connected are a fairly strong early indicator of market expansion in the future.

The liquidity on the stock exchanges also remains low, with a strong preservation of a hold. Lower supplies, large order spreads and volatile price peaks are signs of a bullish market.

The BTC community is meanwhile more enthusiastic than ever from the development of the products in the industry. Lightning Network quickly scales for daily use and in microtransactions.

institutional investors are Bitcoin in 2023 Bullisch

In the middle of the recreation rally in February, Seekingalpha reported that the Bitcoin price rally was mainly powered by institutional investors.

interviewed institutional investors who took part in the survey of a boutique banking company are less willing to invest, but the interest is still great. Brown Brothers Harriman & Co. recently reported that 48 % of the institutes surveyed to add crypto ETFs to their allocations in 2023.

Fidelity Crypto opened the Bitcoin and Ether trade for millions of private investors in March. In addition, the financial services giant offered them to the app.

The regulatory examination of cryptocurrency is a mixture

The regulatory environment for crypto is so mixed that it is difficult to classify it as a Bullish or Bearish. On the one hand, Bakkt recently received the official approval for a crypto deal of $ 155 million.

On the other hand, Bittrex Global hires business in the USA due to the regulatory environment. U.S. law steps of the government against octopuses, coinbase, ripple and binance have made the competition unfair here, says Bittrex.

somewhere between these potential indicators for regulatory effects on the Bitcoin price lies the fact that the coin base share has held against the cryptocurrency despite the regulatory approach.

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