Bitcoin Closing its 6th Consecutive Green Monthly Today for the First Time Since 2013

Bitcoin is showing “impressive strength,” while gold continues to take a beating - “off to its worst start to a year since 1982,” stocks remain flat this week, and the US dollar soars past 93.4 to early November levels.

In another bout of volatility, the price of Bitcoin went to just above $59,900, only to tumble over $3,000 to $56,800 today. As of writing, BTC/USD is back to keep trading around $58k.

Interestingly, not only has April been historically the best month for Bitcoin price, and as a whole, Q2 is also bullish, but we are ready to end Q1 of 2020 as the best quarter in eight years.

Bitcoin will be closing its 6th consecutive green monthly today for the first time since 2013.

Bitcoin Quarterly Returns

Source: Skew

While Bitcoin is showing “impressive strength,” trader and economist Alex Kruger shared his concern about “Traders getting very levered up since yesterday morning.”

“Bybit apes now paying 190% annualized on bitcoin perp longs, Binance longs paying 125%, while bitcoin futures quarterly basis has popped from 22%-24% two days ago to 29%-31% now.”

Extremely leveraged traders end up liquidated on even smaller volatility that exacerbates these moves. As can be seen in the past 24 hours that has 153,629 traders liquidated for $942 million, out of which nearly $475 million belongs to Bitcoin liquidations and 54.5% on Binance, as per Bybt.

All That is Bullish

While the price of Bitcoin is still clinging to $58k, several factors are working in favor of the bulls.

For starters, miners are deploying never seen before levels of hash power to mine as much Bitcoin as they can. The hash rate of the Bitcoin network hit a new all-time high this week, while difficulty is already at an ATH of 21.866 trillion.

As Bitcoin fundamentals hold strong, stablecoin issuance continues to drive forward. According to Ki-Young Ju, CEO of CryptoQuant, the stablecoin market sentiment is currently buying as the issuing for all fiat-backed cryptos is increasing while their redeeming is decreasing.

“Stablecoins circulating supply & exchange holdings hit an all-time high yesterday,” said Ki-Young. “Fewer people cashing out, more people buying stablecoins through fiat to purchase crypto. It's bullish.”

While the newly become Bitcoin holders are maturing into older lifespan brackets, over 9.51% of BTC supply entering into the 1month-6month range, more investors continue to rush into the Bitcoin market.

The first-ever Bitcoin exchange-traded fund, the Purpose Bitcoin ETF launched in the middle of last month, now holds 15,596 BTC, worth $1.16 billion (fund AUM in CAD).

To bring more investors into the market, CME is launching micro Bitcoin futures, one-tenth of one BTC. “CME micro bitcoin futures will bring a great number of retail traders to the fray. Given a contract size of 0.10 bitcoin (or $6K at current levels), expect most futures commission merchants to start offering bitcoin,” noted Kruger.

Reportedly, Morgan Staley is also educating wealth advisors on cryptocurrency and planning to roll out the ability to hold actual BTC as a cash balance within their wealth management platform in the upcoming weeks.

Macro Environment

When it comes to the traditional market, the S&P 500 is mostly flat, the same as the tech-heavy Nasdaq. The stock market fails to show any excitement as the US dollar currently enjoys the bulls.

The USD Index soared as high as 93.4, last seen in early November, up from about 89 at the beginning of the year, despite the Treasury yields down from Monday highs.

While Bitcoin is unperturbed by the surging greenback, gold is taking a beating. Spot gold prices fell to $1,677 per ounce, ending March on the same note that it started on. Before this month, this level was last seen by the precious metal in the first week of June last year.

In the meantime, central banks are doing all that they can to prop up the markets.

“The biggest experiment in monetary history is being continued… Total assets now account for >75% of the Eurozone's GDP,” noted Holger Zschaepitz.

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