The cryptocurrency ready to complete its best first quarter in eight years, significantly outperforming the precious metal, even with rising inflation expectations. The controversy over whether Bitcoin is robbing market share from gold as a store of value is at risk of intensifying in the coming days.
Over the past 8 years, the cost of Bitcoin has grown from $ 100 to $ 60.000. Since the beginning of 2021, Bitcoin has already doubled in value. This is the largest gain in the first quarter since 2013, when the cryptocurrency rate gained 539% from the beginning of January to the end of March. It should also be noted that just in March, Bitcoin grew by 30%. At the same time, gold decreased by 11% for the quarter. Gold hasn’t had such a sad start to the year for the last 39 years.
Some observers suggest that investors can move assets from gold to Bitcoin.
How will the price of Bitcoin change in the second quarter?
Analysts believe that while the influx of institutional investors continues, the Bitcoin price has a chance to continue to rise in the second quarter. Which has historically always been a strong period for cryptocurrency. Some traders are betting on a rise in the rate to $ 80,000 by the end of April.
Since they are confident that there are no prerequisites for a trend change: the news background is positive, the situation on the markets is relatively stable, and the mood of investors is extremely optimistic.
However, there are other opinions as well. Many experts point out that despite positive expectations, $ 100,000 before summer is too ambitious a goal. Most likely, we will see Bitcoin in the range of $ 70- $ 75 thousand in the second quarter. And overcoming the six-figure price will not occur until the end of the third quarter.
What coins can go up in value?
Experts call the decentralized finance (DeFi) sector, as well as crypto-exchange tokens (BNB, KCS, HT), attractive for investment in Q2. They are confident that altcoins in the second quarter have even higher profit potential than BTC. And such coins can show more significant growth.
In the second quarter, will appear updates for the development of blockchain networks from Ethereum, Cardano and Polkadot and NEO. Therefore they will set the technological trend in the sector for the whole year. Experts also call the story with Ripple interesting, since in the coming months there will be new data on the litigation with the SEC. According to the results of which they expect the growth of the XRP token.
The future for cryptocurrency looks better and better
Bitcoin started the year excellently.
The largest investment banks are showing a growing interest in cryptocurrencies. So, according to MarketWatch, Goldman Sachs Group Inc. already in the second quarter of this year will begin offering its wealthy clients the opportunity to invest in bitcoin and other cryptocurrencies.
PayPal Holdings Inc. announced that it will enable its American customers to pay for purchases with cryptocurrencies.
From all this, only one conclusion suggests itself – the future belongs to technologies.