Historically speaking, Bitcoin performs pretty well in the second quarter of a year. Five of the last six years have seen the leading cryptocurrency experience price gains between April and July.
After a rousing start to the year, the spread of the coronavirus has disrupted markets like few things in living memory. Just about everything has taken a hit — stocks, gold, oil, and even cryptocurrencies. Set against this backdrop, it remains to be seen if this second quarter will be another good one for Bitcoin.
Will Q2 2020 See Bitcoin Price Gains?
The first quarter of 2020 ends today, and what a few months it’s been. The dominant theme of the the year so far has obviously been the spread of the coronavirus and the economic impact it has had on just about every market on the planet.
Bitcoin did not escape the carnage unscathed. The digital currency shed tens of billions of dollars from its yearly high of just short of $10,400 to arrive at a local low of below $4,000 on some exchanges.
At the time of writing, a single Bitcoin trades for around $6,400. From its 2020 open of around $7,200, this represents a drop of more than 11 percent.
With a new quarter beginning on Wednesday, cryptocurrency observers are eyeing Bitcoin’s historical performances between the beginning of April to the end of June. As CoinCorner CEO Danny Scott highlights in the following tweet, typically, Bitcoin prices have rallied during the second quarter.
As Q1 comes to an end, let's take a look back at #Bitcoin price movements for Q2
𝗤𝟮 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲
2014:
+𝟰𝟬%
2015:
2016:
2017:
2018:-𝟴%
2019:2020: ??
— Danny Scott
(@CoinCornerDanny) March 31, 2020
Since the year 2014, all but 2018 saw second-quarter gains for Bitcoin. The year followed Bitcoin’s all-time high and was one of the most consistently bearish periods in Bitcoin’s history.
Years with particularly bullish second quarter performances were 2017 and 2019. The former was the year that saw BTC top just short of $20,000 and the latter enjoyed a bull run of its own that saw the price reach almost $14,000 by the end of its second quarter.
Coronavirus Bullish or Bearish for Bitcoin?
The issue that dominated the last three months and is almost certainly the reason behind Bitcoin’s own price drop so far in 2020 is far from behind us. As BeInCrypto recently reported, dramatic growth in the number of unemployed citizens in the US and elsewhere, an ever-rising death toll, and increasing numbers of people being forced to stay at home suggest that the true severity of the virus’s impact will continue to make itself known in the coming weeks.
Some cryptocurrency industry analysts hold that central bank responses to the virus will make scarce assets, like Bitcoin, more alluring. The trillions of dollars being printed up in different nations around the world make the purchasing power of every other unit of currency in an economy decrease and is, therefore, a bailout for the current system financed by those most careful of their money.
The Federal Reserve creates trillions of dollars out of thin air. The Fed is not elected by the people, not a member of the government, not a government agency, yet decides the monetary life of 100s of millions of people in the US. You can’t make this stuff up! #Bitcoin pic.twitter.com/bRjrbZW6VO
— Gabor Gurbacs (@gaborgurbacs) March 28, 2020
Similarly, with the Bitcoin price currently trading considerably below the level many people thought it would be leading up into the historic halving event this May, there is a lot of room for growth. As BeInCrypto has reported in the past, many industry observers believe the sudden shock to Bitcoin supply will be a catalyst for higher prices.
Of course, with economies grinding to all but a halt thanks to the coronavirus and Bitcoin showing itself to be anything but immune from the volatility in wider markets, it remains to be seen just how much new capital flows into the market over the next three months. With no clear consensus as to how long movement restrictions will last for, it could be more than a single quarter before some semblance of normality returns to the world.
The post Bitcoin Is Typically Bullish in Q2 but ‘The Times They Are A-Changin’ appeared first on BeInCrypto.
from BeInCrypto https://beincrypto.com/bitcoin-is-typically-bullish-in-q2-but-the-times-they-are-a-changin/
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