- Historical data shows that Bitcoin has averaged 51% gains in April over the past 10 years.
- This means the Bitcoin price could reach $80,000 if it follows the average gains made each year.
- Bitcoin options open interest shows that a majority of investors are betting on a strike price of $80,000 on call options in April.
April has historically been the most bullish month for Bitcoin. Although the pioneer cryptocurrency recorded new all-time highs in 2021, BTC has been hit with double-digit losses in March.
Bitcoin averages a 51% gain every April
While Bitcoin has reached an all-time high at over $60,000, the cryptocurrency retraced to the $55,000 level at the time of writing. The world’s largest digital currency has been lacking upward momentum and more or less stayed less volatile as $6 billion of Bitcoin options expired on March 26.
Based on Bitcoin’s historical data, April has been a massively bullish month for the digital currency. Price data over the past ten years revealed a 51% average gain for Bitcoin in April, according to Danny Scott, the chief executive of crypto exchange CoinCorner.
Scott further pointed out that there have only been two Aprils where Bitcoin witnessed losses in 2014 (-6%) and 2015 (-4%). Considering a 51% average gain for the leading digital asset in April, this could mean that Bitcoin could reach over $80,000 in the next month.
Following institutional investment in Bitcoin, including Elon Musk’s endorsement of the cryptocurrency with its announcement through Tesla, Wall Street giants could follow suit along with other countries in the world, according to Scott.
Sovereign wealth funds have already started to invest in Bitcoin. Notably, Singapore’s government fund Temasek has been purchasing virgin BTC from miners. NYDIG’s Robert Gutmann further revealed last week that the firm has been in discussions with sovereign wealth funds about getting their foot in the door with Bitcoin.
Investors expect Bitcoin to rally in April
Bitcoin price predictions are high for April, as investors have been placing their bets for the coming weeks based on the effects of crypto exchange Coinbase’s direct listing on the NASDAQ.
Deribit’s data shows that while March BTC options have expired, the outlook on April is more bullish, with $2 billion in open interest and a 0.79 put/call ratio. In April, price predictions for Bitcoin have been set higher, as a majority of investors are betting on a strike price of $80,000 for BTC call options.
Bitcoin April options open interest
After pullbacks in price around monthly options expiry, the Bitcoin price rallied afterward, according to historical data. Sam Bankman-Fried, CEO of crypto exchange FTX, explained:
BTC derivatives have been the primary drivers of spot markets for years. At least since 2018, derivatives move spot more than spot moves derivatives.
However, Bobby Ong, the chief operating officer at CoinGecko, suggests that if Bitcoin’s performance turns out to be strong in April, it could just be a coincidence.
There has not been a good reason for why Bitcoin historically rallies in April, and according to Ong, it could be due to the cryptocurrency’s underperformance in March; therefore, April witnesses a recovery in price. He concluded:
If enough people think that March will underperform and take appropriate steps, then actual performance will underperform too.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.