Why Bitcoin’s outlook is bright despite 64% gain in Q1 

Bitcoin fell below $70K as investors reassessed the state of the crypto market, at the start of the second quarter Recent price actions showed Bitcoin and major altcoins kept moving within the short-term range and still exhibited a bullish bias on the longer-term price charts as whales quickly accumulated both assets. Compared to previous weeks in March, the cryptocurrency market moved stably. The weekly realized volatility dropped to less than 50%, and the market valuation reached $2.64 trillion.  

Bitcoin experienced a remarkable surge of 64% for the quarter and 13% for March alone. Although retail investors’ interest in Bitcoin has grown, price action suggested retail investors were more interested in the new Solana-based tokens and “meme coins.” like the Solana-based Dogwifhat (WIF)

Bitcoin (BTC) and the larger digital asset market, according to Coinbase Head of Institutional Research David Duong. In our opinion, the environment for 2Q24 seems more favorable for cryptocurrency performance going forward. However, we believe that those favorable aspects might only become more apparent beginning in the second part of April.  

According to Duong, the arrival of major institutions is another factor that could drive up the price of Bitcoin in addition to the impending halving event, which will cut the rewards paid to miners in half. Financial behemoths Morgan Stanley (MS), Bank of America (BofA), UBS Group AG, and Goldman Sachs (GS) may begin offering Bitcoin ETFs to customers following the 90-day review period. 

With the halving of Bitcoin, updates to the Ether ETF, and possible rate cuts, digital asset investors are also in for a busy quarter. Bitcoin has started the breakout process, with a weekly close above the range high signifying the first step . To complete the second step necessary to fully confirm its breakout, market bias believes that before Bitcoin resumes its upward trajectory, it may need to dip into the range high and effectively test its new support. As a result, the price of Bitcoin can continue rising toward $75,000 as the halving draws near. 

It is also imperative to consider both the flow of BTC-spot ETF data and the Federal Reserve’s interest rate trajectory in the run-up to the Bitcoin halving event. Bitcoin may respond more strongly to US economic data this week if the BTC-spot ETF market sees a drop in net inflows or records total net outflows during the session.