Bitcoin’s Historic Q1 Performance
In a twist that has left many crypto enthusiasts scratching their heads (and maybe their wallets), Bitcoin (BTC) investors are basking in a quarter that has already outperformed every Q1 since 2014. With gains nearing 30% so far in 2020, this performance has proven to be a delight, especially when you consider previous years where Bitcoin was more like a rollercoaster ride that only went down.
A Trip Down Memory Lane: The Q1 Blues
Historically, the first quarter of the year has been a time of disappointment for Bitcoin holders. Take a look back:
- 2014: A whopping 39% loss!
- 2015: Down 24% – can you say ‘ouch’?
- 2016: Barely hanging on with a drop of 3%.
- 2017: A rare flower, blooming at 11%.
- 2019: Repeat of that pitiful 11%.
- 2011 & 2013: The shining stars with jaw-dropping returns of 165% and 570% respectively.
So it’s safe to say this year’s performance is like finding a $20 bill in a pair of jeans you haven’t worn in ages!
Institutional Interest Surge
What made this turnaround possible? According to statistics from Skew Markets, there has been a steady influx of institutional interest in Bitcoin. Futures data indicates that institutions are no longer just casually browsing; they are engaging with BTC at a much deeper level. Open interest across Bitcoin futures is through the roof, soaring to around $3.7 billion.
Volume and Sentiment: A Mixed Bag
But hold your horses! While institutional volume tells one tale, regular consumers aren’t exactly rushing to the Bitcoin buffet. In fact, Google search queries for Bitcoin have remained flat, which raises an eyebrow or two. Trader Scott Melker summed it up appropriately, stating, “Volume tells all.” Well, maybe it tells some, but certainly not everyone.
Should We Worry About a Correction?
Now, let’s not buy into the hype just yet. With Bitcoin hovering above $9,000, speculations are swirling like autumn leaves. Trader Tone Vays insists that for a genuine bull market, we need to hold the $9,000 mark for a few days. Meanwhile, the Bitcoin Fear & Greed Index is singing a different tune with a bearish score of 57, hinting that we might be overdue for a correction. It’s like a game of poker — should you hold or fold?
As we continue to watch this rollercoaster, analysts are less convinced we’ll see lows of $6,000 again, thanks to January’s bullish performance. Some even suggest we have only one significant resistance level left to conquer at $9,555, which could set off the fireworks.
Final Thoughts
As the dust settles from this impressive first quarter, Bitcoin has shown that it can indeed surprise us. Let’s hope this new trend holds strong, or at the very least, takes us to the amusement park instead of the junkyard!
