The digital asset market is experiencing turmoil, with traders aggressively selling off assets, resulting in a loss of more than $160 billion from the overall cryptocurrency market capitalization since Friday.
Several factors have contributed to this sell-off as the first quarter of the year comes to a close. These include Trump’s tariff threats, apprehensions about the global economy, and a lack of a decisive trigger for the next market rally.
Nevertheless, history suggests that there may be a flicker of optimism as we move into the second quarter. April has the potential to set a bullish tone for cryptocurrencies.
Historically, April has yielded an average return of 27% for Bitcoin, making it the third strongest month overall, according to data from Barchart. November and May follow closely, boasting returns of approximately 38% and 26%, respectively.
As reported by CoinDesk analyst Omkar Godbole for the premium newsletter Crypto Daybook Americas, this seasonal trend could serve as a crucial positive sign for the market.
“While seasonality factors aren’t always dependable as standalone indicators, they gain credibility when combined with other signals, such as the recent stopping of sales by long-term holders,” Godbole noted.
A potential concern may arise from the defunct exchange Mt. Gox, which is moving large amounts of Bitcoin to centralized exchange wallets. This could instigate fears of creditor liquidations.
“A short-term risk lies in Mt. Gox’s sizable BTC transfers to Kraken, which might create temporary selling pressure or market fluctuations,” commented Deribit CEO Luuk Strijers.
Read more: Now Is ‘Really Good Time’ to Buy Bitcoin, Says Trillion Dollar Investment Manager
