It’s been a hazy will the entire year for bitcoin, but here comes sunshine. After shedding $119 billion-plus looking at the market cap in Q1 amid pressure from regulators as well as the cold shoulder from advertising platforms, the bitcoin price is ready to get a rebound. And yes it appears the heavens are starting to align with the to happen inside the second quarter. CNBC’s Brian Kelly outlined the drivers of the bitcoin price for that new quarter, and we’ve added to them.
US Tax Season’s Nearly Over
April 15 marks no more tax season in the United States, and it’s just around the corner. Investors who profited from bitcoin’s massive rally in December have to get the bucks to pay for Uncle Sam now, which could explain a percentage of the selling pressure within the bitcoin price in March. Kelly noted that any “tax-related selling” that’s been happening in March will almost certainly ended in the little more than every week. (Separately, Kelly also noted how the blockbuster $2 billion Telegram ICO may have attracted investments far from BTC.)
Coincheck Offer Sight
As CCN previously reported, Japan’s Coincheck could possibly be on the block. It is not only for sale nevertheless the potential buyer, online brokerage Monex Group, is the parent company of US-based TradeStation (with massive data and charting capabilities) and it is openly traded.
“It’s a tremendous confidence boost; you now have a regulated public company in Japan buying in to a crypto exchange,” Brian Kelly, CEO of BK Capital Management, told CNBC.
Kelly added that “massive, massive sentiment shift.”
History Is on Bitcoin’s Side
If you do not were looking to buy the dip, March was tough to watch for bitcoin investors. But however the bitcoin price suffered, the performance only proves that history repeats itself. March is historically a dismal month for the leading cryptocurrency, “rising just one with the last seven years [in 2013],” much like Fundstrat data.
That’s good news for April because historically, that is among the best trading months for that bitcoin price, “rising five from the last seven years,” Fundstrat says.
Other Tailwinds
The forces for bitcoin are stronger than the forces against it. While these three drivers in the bitcoin price appear imminent, there can be others. For instance, major bitcoin markets around the globe like the United States are awaiting a regulatory framework to look at fit around take the uncertainty from the equation, among other reasons. Maybe it’s the catalyst the cryptocurrency markets should bring them over the top.
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