The price of bitcoin (BTC) posted the worst Q1 in a decade, raising questions about where the cycle stands
Bitcoin has just noticed the worst first quarter in a decade, falling 11.7% as markets struggle to understand the agenda of the new new administration.
The performance was ranked on 12th in the past 15 first quarter, according to NyDig Research data.
The drawdown invites a familiar question to crypto circles: Is the cycle done? The last time Bitcoin started this year was not good in 2015, during a prolonged fall following the 2013 climax and after the Fall of Mt. GoxAccording to Nydig. Back then, prices recovered moderately to the rest of the year before surging in 2016.
In the first quarter of 2020, in the midst of a market seller tied to the fears surrounding the Covid-19 Pandemic, BTC saw a 9.4% drawdown but then recovered to end the year up to 300%. In other years with a negative return of Q1 – such as 2014, 2018 and 2022 – Bitcoin ended the year intensely, in conjunction with the tail ends of previous bull cycles, the research note said.
At this time, the backdrop is furious. Cryptocurrency prices passed after Donald Trump won the US election in November after running a pro-crypto campaign. While under the Trump administration, the sector is gaining greater clarity of regulation, and the US Securities and Exchange Commission (SEC) Backed off A number of suits Against crypto companies, it’s not all bullish.
Trump announced his rewards tariffs against almost every country in the world last week, leading to a massive $ 5.4 trillion US equities market wipeout in just two days. This led to the lowest level of the S&P 500 index in 11 months and the entry of NASDAQ 100 into the bear market territory. While Bitcoin has outperformed to this dayWhat happens after the opening of the Monday bell is unclear.
Historically, a weak Q1 does not always coast the destiny for BTC, showing Nydig data. The owner returned to half the years when it started in red. The recent macroeconomic backdrop has seen analysts Raise the odds of shrinkingthat could test the BTC role as a “US hedgation hedge.”
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