As many of you are probably aware, the first quarter of 2018 has been rather gloomy for Bitcoin, and the other Top 10 cryptocurrencies as well. After a supersonic end to 2017, things went downhill, somewhat alarmingly fast at times, but the good news is, it looks like the slide is coming to a halt.
Regulatory concerns and advertising bans led by Facebook were among the chief causes of Bitcoin’s falling value. But, according to Brian Kelly from CNBC, there are several drivers that will reverse the trend in the second quarter of 2018.
Taxes are paid
In the U.S. the tax season ends on 15th April. It is likely that many Bitcoin investors who benefitted from the bull run at the end of 2017 have sold BTC during March to pay their taxes. Once the taxes are paid, it is probable that investors will return to the market. Kelly also suggests that the Telegram ICO may have lured many investors away from buying Bitcoin, but this is also only a temporary situation.
A new Coincheck deal
Japan’s Coincheck cryptocurrency exchange is up for sale. The buyer, which has just been announced, is the Monex Group, which is a regulated Japanese publicly traded company and online brokerage. According to Kelly, this is a “massive confidence boost”, because Monex is both regulated and public, and he suggests Monex’s interest shows a “massive, massive sentiment shift.” In other words, if a regulated company is willing to buy a crypto exchange, it indicates more mainstream financial industry support for Bitcoin and its peers.
It’s ‘Mad March’ all over again
Julius Caesar was warned to “Beware the ides of March” and Bitcoin investors might do well to follow the same advice. Historically, March has been a bad month for Bitcoin: its value has only risen once in March over the past seven years. However, April is historically the month where BTC gets an uplift and is one of the best trading months, according to Fundstrat.
Overall, there are reasons to feel positive about Bitcoin’s future in 2018. Regulatory bodies are starting to get to grips with the cryptocurrency market and may make decisions soon that remove the uncertainty from the crypto market. This will give Bitcoin the kind of boost that will surely result in a bounce back!