April is Historically ‘Very Strong Month’ for BTC; AVAX & LUNA Show Potential - Analysts
April has historically been one of the strongest months for the crypto market, with bitcoin (BTC) rising by 46% on average, according to major crypto exchange Kraken. However, there are also other ecosystems to look out for, with Avalanche (AVAX) and Terra (LUNA) being among the most promising, argued crypto trading platform ByBit and the on-chain analytics platform Nansen.
According to Kraken’s latest monthly market report, April is “historically a very strong month” for bitcoin. Since 2011, the bitcoin price has risen by a median of 27% and an average of 46% during the month of April.
In terms of average price performance, April has historically been the second-best month for bitcoin after November, when prices have risen by 48% on average.
Looking at the median price performance, April has historically been the best month of all by a pretty wide margin.
Meanwhile, Martha Reyes, Head of Research at digital asset exchange BEQUANT, said in a comment today that volatility rose slightly across the crypto market in March, along with a continued fall in the correlation between BTC and other asset classes.
“Bitcoin’s correlation to markets and BTC-related equities peaked in January as volatility rose but it has since waned, with gold expressing a negative correlation to BTC since,” Reyes said.
She added that bitcoin’s correlation to other asset classes “is not usually strong or long-lasting,” and said this is what makes it “appealing for diversification purposes for sophisticated retail and institutional investors alike.”
The comments came after BEQUANT published a report that said the correlation between bitcoin and traditional markets such as the US S&P 500 stock index, the Nasdaq stock index, and gold, all peaked in January this year.
Among these traditional asset classes, the correlation between gold and bitcoin is now in negative territory, the report found.
Aside from bitcoin, there are also a number of other ecosystems that investors should look out for in April, ByBit and Nansen wrote in a new jointly published report.
Among the top ecosystems to keep an eye on for the month is Avalanche, the report said, citing a gradual increase in the daily transaction count and a move by users to several subnets on Avalanche.
This is “a positive sign for the network,” Bybit and Nansen wrote in the report.
Further, Terra was also brought up as an ecosystem that should be paid attention to in April, with steady increases seen in both the daily active addresses and the daily transaction numbers on the network.
Discussing Terra further, the report claimed that despite the growth in usage, transaction costs have been on “a general decline” on the network.
It argued that,
“This is believed to be a healthy on-chain growth indicator, indicating growing activity within the ecosystem in tandem with the positive price action.”
It added that the team’s buying of BTC for reserves to partially back the UST stablecoin has “definitely helped to bolster Terra’s bull case.”
At 13:43 UTC on Friday, BTC is trading at USD 42,888, having dropped 1.5% in a day and 5.6% in a week. At the same time, LUNA is down 6.5% in a day and 4.5% in a week, currently trading at USD 98.6. AVAX, meantime, is one of the few green coins in the past 24 hours - it's up 1.5% in a day and down 10% in a month, changing hands at USD 85.9.
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