Bitcoin and the U.S. stock market have entered one of the strongest seasonal periods of the year.
According to data tracked by crypto service provider Matrixport, the top cryptocurrency by market capitalization has seen price increases in April over the past 6/10 years, with an average gain of more than 17%. April has been the best month of the first half of the past decade and the third best month of the year for Bitcoin.
Over the past decade, the S&P 500, Wall Street’s benchmark stock index, has returned an average of 2.6 percent in April, eight out of ten.
“The recent rally in US equities will also have positive spillover effects on cryptocurrencies – especially as we head into April, which is for US equities (SP500 +2) .6%, Nasdaq +2.9%, Bitcoin +17% % and Ethereum +46%,” said Markus Thielen, director of research and strategy at Matrixport.
“Our big thesis that inflation will come down in 2023 is happening. All risk assets will appreciate.”
Bitcoin gained 23% in March, bringing its year-to-date gains to 67%. The S&P 500 is up 7% this year. Data on Friday showed the Federal Reserve’s preferred measure of inflation cooled again in February, boosting hopes that policymakers will be able to re-tighten their powerful currency.
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According to Coindesk