The first quarter of 2021 was no doubt one of the most thrilling in bitcoin history. It started on a high note and closed it with the same vibe. Despite the periodic price drops that BTC experienced, Q1 of 2021 came out the best since Bitcoin’s inception. Historical data shows that Q2 has been even better, raising the question if bitcoin would be heading further north. The Best Q1 Ever The end of March signified the end of the first yearly quarter. Bitcoin ended the quarter with 100% gains, making it the best ever. Various events made this year’s first three months interesting and bullish. On February 8th, Tesla announced a .5 billion bitcoin investment, and in March, the Elon Musk-led company started accepting BTC as a payment option. As with Tesla’s purchase that
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The first quarter of 2021 was no doubt one of the most thrilling in bitcoin history. It started on a high note and closed it with the same vibe. Despite the periodic price drops that BTC experienced, Q1 of 2021 came out the best since Bitcoin’s inception. Historical data shows that Q2 has been even better, raising the question if bitcoin would be heading further north.
The Best Q1 Ever
The end of March signified the end of the first yearly quarter. Bitcoin ended the quarter with 100% gains, making it the best ever.
Various events made this year’s first three months interesting and bullish. On February 8th, Tesla announced a $1.5 billion bitcoin investment, and in March, the Elon Musk-led company started accepting BTC as a payment option.
As with Tesla’s purchase that pumped bitcoin to a high at the time, MicroStrategy kept purchasing as much BTC as possible without letting up.
More opportunities were also created for BTC HODLers to use it in their daily purchase. PayPal announced that its U.S. customers will be able to pay for goods using cryptocurrencies. Bakkt also helped enhance crypto users’ spending habits by partnering with some merchants to assist their customers in paying for products with cryptocurrencies. It was indeed a bullish first quarter.
Q2 Is Historically Bullish For Bitcoin
With Q1 over, we now look to face the second quarter of 2021. Looking at Bitcoin’s historical data, it is impossible not to see how well bitcoin has performed in Q2 of almost every year. Even at times when the preceding quarter was negative, the second always provides consolidation.
Since bitcoin started trading, only on one occasion did it record losses in the second quarter. That happened in 2018 when Q2 opened at $6,884 and closed at $6,385, representing a 7% drop in price. To date, that has been both the first and the last time Q2 recorded a quarterly loss.
Bitcoin averages a 59.82% gain in Q2. The highest increase during a second-quarter was in 2019 when the leading cryptocurrency surged by 157% after opening and closing at $4,112 and $10,591, respectively.
The massive gains recorded in the second quarter of 2019 were mostly buoyed by whales which took a keen interest in the asset and were able to pump it to over $10,000. Crypto exchanges also played a huge part in the 2019 Q2 milestone as margin trading became more accessible to traders, thus increasing trading volumes.
Will History Repeat Itself in Q2 2021?
If history is any indicator, the cryptocurrency could see even higher adoption levels in Q2, following the impressive performance in Q1. Starting with a possible surge in use cases as more payment companies could integrate crypto as a settlement option.
More publicly-traded firms and private institutions will be alerted to opportunities to invest in the so-called digital gold, following the example set by MicroStrategy, Tesla, MassMutual, and more.
Goldman Sachs, one of Wall Street’s biggest names, plans to launch a full spectrum bitcoin investment vehicle for wealth management clients. More banks will likely follow the same path as Morgan Stanley and BNY Mellon are already leading the way.
The first quarter saw bitcoin hit a new all-time high. There is a good chance that the first-ever cryptocurrency will record a new record during the second quarter considering the historical data and the current developments.
Keeping in mind that bitcoin entered Q2 2021 at about $59,000, an increase of 60% (the average ROI in the past second-quarters) would take the asset to just above $94,000.