- Historical data shows that Bitcoin has gained 51% in April over the past 10 years.
- This means that the bitcoin price could reach $80,000 if it follows the average gains made each year.
- Open interest in Bitcoin options shows that the majority of investors are betting on a strike price of $80,000 on call options in April.
April has historically been the bullish month for bitcoin. Although the leading cryptocurrency hit all-time highs in 2021, BTC experienced double-digit losses in March.
Bitcoin averages 51% every April
While Bitcoin reached an all-time high at over $60,000, the cryptocurrency is back at the $55,000 level at the time of writing. The world’s largest cryptocurrency lacked upward momentum and remained somewhat less volatile as $6 billion of bitcoin options expired on March 26.
Based on historical Bitcoin data, April was a bullish month for the digital currency. Price data over the past 10 years has revealed an average gain of 51% for Bitcoin in April, according to Danny Scott, CEO of cryptocurrency exchange CoinCorner.
Scott also noted that there were only two Aprils where Bitcoin saw losses in 2014 (-6%) and 2015 (-4%). Given the average gain of 51% for the leading digital asset in April, this could mean that Bitcoin could reach over $80,000 in the next month.
After institutional investment in Bitcoin, including Elon Musk’s endorsement of the cryptocurrency by announcing it through Tesla, the Wall Street giants could follow suit with other countries in the world, according to Scott.
Sovereign wealth funds have already started investing in Bitcoin. Notably, the Singapore government fund Temasek is buying virgin BTC from miners. NYDIG’s Robert Guttman also revealed last week that the company is in discussions with sovereign wealth funds about getting into bitcoin.
Investors expect Bitcoin to rise in April
Bitcoin price predictions are high for April, as investors have been placing their bets for the coming weeks based on the effects of cryptocurrency exchange Coinbase’s direct listing on the Nasdaq.
Deribit data shows that while BTC options will expire in March, the outlook for April is more optimistic, with $2 billion in open interest and 0.79 buying/sell ratio. In April, Bitcoin price predictions were set higher, with the majority of investors betting on the $80,000 strike price of BTC call options.
Bitcoin April Options Open Interest
After pulling back in prices around the expiration of monthly options, the price of Bitcoin subsequently rose, according to historical data. Sam Bankman-Fried, CEO of Crypto Exchange FTX explained:
Bitcoin derivatives have been the primary driver of the spot markets for years. Since at least 2018, derivatives have more spot moves than derivatives have spot moves.
However, Bobby Ong, chief operating officer of CoinGecko, points out that if Bitcoin performs strongly in April, it may just be a coincidence.
There was no good reason for Bitcoin to historically rise in April, and according to Ong, it could be due to the weak performance of the cryptocurrency in March; Therefore, April sees a rebound in prices. he completed:
If enough people believe that March will be underperforming and take appropriate steps, the actual performance will also be underperforming.