The beginning of this year was hazy with regard to Bitcoin news and the digital currency market in general, as the market incurred many losses, and the total value of the market fell to its lowest level since last November at $244 billion, after its value exceeded $800 billion at the end of last year. The main reason for these heavy losses is due to the intense and continuous selling movements of digital currencies, following the growing fears of pressure from regulators in most countries of the world, in addition to cold and negative news and social media that fiercely resist the growth of this market, despite this negative performance of digital currencies during The first quarter of this year, however, there are some circumstances that many see that the second quarter will be more booming for Bitcoin.
Sharp declines during the month of March
Despite the decline that we saw in bitcoin prices throughout the month of March, the performance of the currency during this month only proves that history repeats itself, as the month of March is a gloomy month for the cryptocurrency, as it rose only once in this month over the past few years. The last seven years, according to Fundstrat data, and if we take into account the theory that history repeats itself, it is expected that Bitcoin will rebound in the month of April because it is considered one of the best months for trading in Bitcoin, as it witnessed a rise five times in this month over the past seven years according to Fundstrat data, Historically, the second quarter has always been good for all cryptocurrencies, not just Bitcoin, so we don't expect it to be any different.
Also, April 15th marks the end of the tax season in the United States. Investors who benefited from the huge rise of Bitcoin in December are forced to obtain money to pay money for taxes. This explains the selling pressure in the price of Bitcoin during the month of March. Some see this as a major reason for Bitcoin's recovery during the second quarter.
Moreover, there is a significant decline in the number of those who are confident and certain of this market due to the increase in procedures, regulations and repression in many parts of the world, and this led to Bitcoin building resistance at the level of $ 7000, but if the situation changes with the presence of more good news we can We can expect to start seeing prices rise again.
Finally, the Monex Group recently announced its intentions to buy the Coinshik Stock Exchange, which is an exchange for trading digital currencies in Japan, which gave great confidence in the markets, as the traded company is scheduled to buy the exchange for trading digital currencies, and this means a massive shift in tendencies towards cryptocurrencies, which will positively affect on its performance in the second quarter.
- US Dollar largely erases 2024 gains amid expectation of federal rate cuts. - 17 September, 2024
- Rare currency pairs in the Forex market - May 26, 2023
- Key tips for traders in Forex Market - April 20, 2023
