Despite sluggish performance in Q1, Bitcoin investors expect greater return on investments in next 3 months

Investors in the Bitcoin community are looking forward to the days the value of the crypto asset would appreciate after experiencing a sluggish movement in the first quarter of 2022.

Bitcoin has been trading between $40,000 and 45,000 in the last three months, resulting in speculations that the crypto asset might have found its price floor within the range.

However, an analysis of Bitcoin’s data in the last five years by Ripples Nigeria showed that the coin created by Japanese tech investor Nakamoto Satoshi, usually posts a positive performance in the second quarter.

However, there are few exceptions when the digital asset disappointed the boisterous investors looking forward to a change in fortune after a poor performance in the previous quarter.

Findings by cryptocurrency aggregator site, CoinGecko, revealed that in Q2 of 2017, the value of Bitcoin rose by 122.1 percent, a year after depreciating by -6.8 percent.

In 2019, Bitcoin gained 165.3 percent in market value, its highest climb in a long time, as demand for the digital currency surged.

READ ALSO: Bitcoin skeptics are losing credibility —Crypto investor, Michael Saylor

During the peak of the COVID-19 pandemic in the second quarter of 2020, the value of Bitcoin jumped by 42.4 percent as retail and institutional investors sought alternatives to traditional asset classes such as stock market, bonds and gold investments.

These data show that the period to buy into Bitcoin or HODL (hold) is the quarter before Q2.

However, when last year’s performance where Bitcoin recorded 40.18 percent growth, is factored in, investors need to tread with caution.

Also, considering the fact that Bitcoin is down by -15.3 percent quarter-to-date this year, the growth possibility becomes blurry, and it could result to another greater fool period as experienced in 2021 when some investors buy in or took a long position going into Q2, only for their investment to fall -40.18 percent during the period.

With Bitcoin now mirroring the United States stock market and interest rates movement, predicting the future price performance of the crypto asset based on previous performances becomes increasingly difficult, so investors holding the cryptocurrency are advised to tread with caution.

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