This will become the blood of digital assets, with traders hitting the sale button, sweeping out cryptocurrency market capitalization of over $160 billion starting Friday.
As the first quarter of this year ends, there is little to sell, including the threat of Trump’s tariffs, global economic concerns, and the lack of a clear catalyst for the next leg.
However, if history is anything, there may be a faint glow of hope heading into the second quarter, as April can bring about a bullish setup of code.
Based on the gross profit margin since 2010, April marked the third month of the month, with an average return of 27% for Bitcoin. November and May were the other two months, with the highest returns, respectively, and earning around 38% and 26%, respectively.
As Coindesk analyst Omkar Godbole reported in his Crypto Daybook Americas (a premium newsletter to help traders with informed investment decisions), this seasonality can be a much-needed and positive indicator of the market.
“Seasonal factors are less reliable than standalone metrics, but coupled with other signs, such as the recent halt of sales by long-term holders, they appear reliable,” Godbole writes.
One cog on the wheel is that Gox Mt. Gox has transferred a considerable amount of Bitcoin to a central exchange wallet, which can create fear of creditor liquidation.
“The potential short-term risk is Gox Mt. Gox, which is transferring large quantities of BTC to Kraken. This could lead to temporary sales pressure and market volatility,” said Luuk Strijers, CEO of Deribit.
Read more: Now is a “really good time” to buy Bitcoin, says the Trillion Dollar Investment Manager