While profits were posted in Asian markets on Friday and there is little movement there ahead of the weekend, red signs once again dominate the crypto market. Although Bitcoin is doing slightly better than the broader market over a 24-hour period, it is still threatened by the weakest April in at least a decade.
According to data from blockchain analytics firm Coinglass, Bitcoin has lost around 14.8% since the start of the month to date. If it does not recover significantly by Saturday night, it would match April’s weakest monthly performance since sightings began in 2009. However, industry watchers expect increased volatility on the futures markets, especially at Friday’s expiry.
Historically, April has often been a very good month for the first digital currency. In 2017 and 2020, the price increased by more than 30% four times in a row on a monthly basis. According to Coinglass, there were only losses in April 2014, 2015 and 2021. With discounts of 1.6-3.5%, these were also relatively moderate. Seen in this light, the nearly 15% monthly negative so far is a negative outlier of otherwise rather positive seasonal trends in April.
Inflationary pressures and the strength of the dollar weigh on
The main reasons for the current weakness are macroeconomic factors such as inflation and interest rate concerns as well as the strength of the dollar, which are likely to determine global events in the medium term as well. In this context, positive news such as the fundamental strength of the Bitcoin network, new openings of the traditional financial world for Bitcoin and Co or the acceptance of digital key money as an official means of payment in the Central African Republic first came to light. extinct. .
“Bitcoin’s volatility over the past few weeks can largely be attributed to its correlation with other risky assets,” Joe Haggenmiller, head of markets at crypto trading firm XBTO Group, told the outlet. Dow Jones. Despite the growing uncertainty in all risk assets, it has recently been relatively stable in the $38,000-$41,000 range.
Notice of conflict of interest:
The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which benefit from any price movements resulting from the publication: Bitcoin.
The editor-in-chief of the publisher Börsenmedien AG, Mr. Leon Müller, has taken direct and indirect positions in the following financial instruments mentioned in the publication or related derivatives which may benefit from any price developments resulting from the publication: Bitcoin.
The author holds direct positions in the following financial instruments mentioned in the publication or related derivatives that may benefit from any price movements resulting from the publication: Bitcoin.
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