The first quarter of the year is generally a bearish time for the crypto markets. This year, however, currently has Bitcoin’s best Q1 since 2013. Furthermore, this comes as Bitcoin continues its surge past the $9,000 line and numerous indicators are flashing bullish.
Bitcoin crosses $9,400 in standout Q1
Although it is hard to narrow down the rise in Bitcoin’s price to a single factor, this quarter looks to be the best in over half a decade. According to fresh data, Bitcoin is currently attracting a lot of institutional interest sustaining the premier crypto’s price surge.
At the time of writing, Bitcoin is trading at a price of $9,412 – according to current price data from COIN360. This comes less than a day after Bitcoin finally broke the $9,000 line. This indicates traders are now feeling confident enough in the bullish market signals to increase their positions.
With that said, Bitcoin’s gains during Q1 of 2020 dwarf the past years’ first quarters. In fact, the price of Bitcoin has risen roughly 30% since the start of the new year. Additionally, observers should note that this is after just 29 days of 2020.
Moreover, considering the coronavirus’ dampening effects on cryptocurrency and financial markets alike, there is also significant room for further gains. The following chart shows Bitcoin’s quarterly returns during the last seven years.
This quarter currently touts gains that are more than double that of the next best year’s, 2017. 2017 was also a standout year for Bitcoin, as the second and fourth quarters saw massive gains. Nevertheless, 2020’s gains of over 29% in Q1 already dwarf 2017’s Q1 gains of 11.21%.
Institutional investors appear to be fueling Bitcoin’s massive rise
As a reminder, the end of 2017 was during the massive cryptocurrency rally that brought the cryptocurrency’s price to $20,000. Although some analysts are already drawing parallels between 2017 and 2020, one should stress that it is still early days.
The ongoing cryptocurrency rally is remarkable in that it appears to be driven mainly by institutional investments. In fact, Google searches for ”Bitcoin” are mostly flat during the past month. This means that regular consumers are likely not fueling Bitcoin’s current rise.
In the past few days, we have reported on the numerous technical indicators that began to flash bullish. Following our first reports that a 2020 Bitcoin bull run could now soon be underway, the price of Bitcoin has risen by roughly 10%.
Image Source: Bitcoin.com
Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.