- Historically, April has been a bullish month for Bitcoin and US stocks.
- Recent inflation cooling may further boost the performance of Bitcoin and US stocks.
- A positive spillover effect from a bull rally in US stocks may benefit cryptocurrencies.
April has traditionally been a bullish month for risk assets, and this year is no exception, with both Bitcoin and US stocks expected to thrive. According to Matrixport, a crypto services provider, Bitcoin has gained in April for six of the last ten years, with an average return of more than 17%. Moreover, April was the best month for Bitcoin in the first half of the year and the third-best month for the entire year.
Not only that but the S&P 500, a benchmark equity index for Wall Street, has also shown impressive gains in April, averaging a return of 2.6% in the past ten years and gaining eight out of ten times. With such a strong performance from Bitcoin and the S&P 500, analysts are optimistic that this bullish trend will continue into April.
Markus Thielen, Head of Research and Strategy at Matrixport, notes that the recent bull rally in US stocks should also have a positive spillover effect on cryptocurrencies, especially since April has historically been a strong month for Bitcoin, Ethereum, and US stocks. With Bitcoin already experiencing a 23% rise in March, a year-to-date gain of 67%, and the S&P 500 up 7% this year, the outlook for both Bitcoin and US stocks appears bright.
Furthermore, recent data from the Federal Reserve indicates that inflation is cooling down, which has raised hopes that policymakers will be able to dial back their aggressive monetary tightening. This news could further support the upward momentum of Bitcoin and US stocks, giving investors more reason to be bullish.
In conclusion, April is shaping up to be a favorable month for both Bitcoin and US stocks, with investors eagerly watching to see if these assets can continue their strong performance in the coming weeks.
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