Should we fear Bitcoin as March approaches? The trend has been very clear for ten years: 8 out of 10 years saw negative results in this first month of spring. The red won and the declines recorded varied between 1% and 37% depending on the year.
After our article on the two most bullish months for Bitcoin, let’s take a look at what turns out to be the worst month of the year today. Thanks to the data recovered from Trade viewThe table below shows Bitcoin’s monthly performance since 2011.
March, the worst month for Bitcoin
For the past decade, Bitcoin was largely in decline in March. Bitcoin’s price fell 25% over the past year, just as traditional financial markets were rocked by the COVID-19 epidemic. Of course, the factors differ every year: in 2018, March was part of the (long) correction after the record increase in late 2017.
The fact remains that the month of March has not benefited from Bitcoin for 8 out of 10 years. The 2013 exception is a reminder of the extent to which cryptocurrencies are not (yet?) Following the same trends as the traditional stock market: 9 years ago, Bitcoin saw a 171% increase over this month. This growth had enabled him to hit his new historic record.
What about March 2021?
What will happen in 2021? There are several options for answering this question. This Monday, Bitcoin saw a sharp correction from its all-time high on Sunday when the virtual currency flirted at $ 59,000. A pullback – the first since Tesla announced a whopping $ 1.5 billion investment in cryptocurrency two weeks ago.
The euphoria surrounding this announcement has since subsided and is giving way to profit-taking on Monday. In the rearview mirror, it was PayPal that triggered the popular cryptocurrency’s upward trend last December. The electronic payments giant announced that it would allow its users to buy and sell these digital currencies on its platform. Bitcoin then rose from $ 20,000 to over $ 42,000 in the month in question. As a result, the price lost $ 12,000 to bounce back from the $ 30,000 support in early February.
A correction of the same kind cannot be ruled out – perhaps waiting for a new institutional announcement that would make the decentralized digital currency all the more important. According to experts, technical support of $ 47,000 or even $ 42,000 (without a real negative announcement) is possible.
That said, if March 2021 were only a few percent into the red, Bitcoin wouldn’t come out as a loser. At current price, it has a capitalization of nearly $ 1 trillion ($ 1,000 billion), enough to defend its role among a host of more traditional assets. Its backers and future investors will only get a breath of fresh air, and its price will be even more solid. For the skeptics, his speculative bubble will no longer be.
Also Read – How to Declare Your Cryptocurrencies in France in 2021