The pioneering cryptocurrency achieved double-digit appreciation in the last six months. The market value of cryptocurrencies exceeded USD 2 trillion in the last week.
Although Bitcoin managed to stay above USD 60,000 Bitcoin (BTC), it closes the last seven days with a modest 1.14% appreciation. According to historical data, the second quarter has been excellent, on average, in terms of the appreciation of Bitcoin.
A new approach to the all-time high of USD 61,200 on March 13th suggests the establishment of new ceilings. This is due to the interest that institutional investors have maintained in the first cryptocurrency.
Kraken Intelligence conducted a study on the evolution of the cryptocurrency market in March. It states that the double-digit growth that Bitcoin achieved during the last six months could remain in the current quarter.
As a support for the price curve of Bitcoin, the study presents two moving average curves: the 20-week exponential moving average (20W EMA) and the 21-week simple moving average (21W SMA).
In addition to that, the Director of Business Development for Kraken, Dan Held, said that the price of Bitcoin will not grow forever. However, he believes that it will settle between 100 and 200 times its current capitalization.
Metrics that Support the Bullish Cycle
A Coin Metrics report on Bitcoin on-chain indicators includes the relationship of Market Value by Realized Value (MVRV) and the Spent Output Profit Ratio (SOPR) indicator, among others. The analytical firm considers that the behavior of these parameters would show that Bitcoin’s bullish cycle has not yet concluded.
The aforementioned study concludes that the supply of Bitcoin in the hands of short-term holders exceeded 50% in previous bullish cycles. Currently, the supply of Bitcoin acquired in the last six months has grown to reach 36%.
Altcoins Continue to Gain Momentum Against Bitcoin
Although Bitcoin’s bullish momentum has led it to triple the 2017 all-time high, 44 of the top 50 altcoins by market capitalization outperformed it in the first quarter. The pioneering cryptocurrency lagged behind altcoins on February 11th, when people talked about the occurrence of a month of altcoins. Then, on March 31st, the parameters that favored an altcoin season remained.
In this context, the price of XRP recently reached USD 1 for the first time since 2018. The notable rally could have been a consequence of an improvement in the legal perspective on the SEC’s lawsuit against Ripple. Besides, Grayscale, which has suffered a steady decline in share premiums in its Bitcoin fund GBTC, wants to transform it into an ETF.
Expectations on Bitcoin ETFs Grow in the United States
The oldest bank of the United States, BNY Mellon, announced a new initiative that increases pressure on regulators to approve a Bitcoin ETF. They said they work for a Bitcoin exchange-traded fund proposed by former White House communications director Anthony Scaramucci.
Other firms that have proposed Bitcoin ETFs to the SEC include VanEck, which did so in January. NYDIG and Morgan Stanley, and Goldman Sachs, and Fidelity, among others, have also filed applications with the SEC.
By Alexander Salazar