Bitcoin and U.S. Stocks Enter Strong Seasonal Period
Bitcoin (BTC) and U.S. stocks have entered one of their strongest seasonal periods of the year, according to data tracked by crypto services provider Matrixport. The top cryptocurrency by market value has chalked up gains in April in six out of the past ten years, averaging a return of more than 17%. Over the past decade, April has been the best month in the year’s first half and the third-best month for the full year for Bitcoin.
Meanwhile, Wall Street’s benchmark equity index S&P 500 has averaged a return of 2.6% in April over the past ten years, gaining eight out of ten times.
Positive Spillover Effects for Crypto
“The recent bull rally in U.S. stocks should have positive spillover effects for crypto as well – especially since we are now entering the month of April, which has been strong for U.S. stocks (SP500 +2.6%, Nasdaq +2.9%), Bitcoin +17%, and Ethereum +46%,” said Markus Thielen, head of research and strategy at Matrixport. Thielen added that their big thesis for 2023, which is that inflation will decline, is playing out and that all risk assets should rally.
Source: CoinDesk
