April Seasonality Favors Bitcoin and Stocks

The first month of the second quarter is usually bullish for risk assets.

AccessTimeIconApr 3, 2023 at 6:49 a.m. UTC
Updated Apr 3, 2023 at 3:18 p.m. UTC

Bitcoin (BTC) and U.S. stocks have entered one of their strongest seasonal periods of the year.

The top cryptocurrency by market value has chalked up gains in April in six out of the past 10 years, averaging a return of more than 17%, according to data tracked by crypto services provider Matrixport. Over the past 10 years, April has been the best month in the year's first half and the third-best month for the full year for bitcoin.

Wall Street's benchmark equity index, the S&P 500, has averaged a return of 2.6% in April in the past 10 years, gaining eight out of 10 times.

"The recent bull rally in U.S. stocks should have positive spillover effects for crypto as well, especially since we are now entering the month of April, which has been strong for U.S. stocks (S&P 500 +2.6%, Nasdaq +2.9%), [b]itcoin +17%, and [ether] +46%," Markus Thielen, head of research and strategy at Matrixport, said.

"Our big thesis for 2023 that inflation will decline is playing out. All risk assets should rally," Thielen added.

Bitcoin rose 23% in March, taking the year-to-date gain to 67%. The S&P 500 has gained 7% this year. Data released on Friday showed the Federal Reserve's preferred inflation gauge cooled back down in February, boosting hopes that policymakers will be able to dial back their aggressive monetary tightening.

Edited by Parikshit Mishra.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.