According to major crypto exchange Kraken, April is one of the strongest months historically for the crypto market, with bitcoin (BTC) up 46% on average over the month. However, crypto trading platform ByBit and on-chain analytics platform Nansen said there are other ecosystems to watch out for, with Avalanche (AVAX) and Terra (LUNA) among the most promising.
According to Kraken's latest monthly report, April is historically a strong month for Bitcoin. The median increase in the Bitcoin price during the month of April since 2011 is 27%, while the average increase is 46%.
In terms of average price performance, April has historically been the second best month for Bitcoin after November, when prices rose an average of 48%. Considering the median price performance, April was by far one of the best months.
Meanwhile, Martha Reyes, Research Manager of digital asset exchange BEQUANT, said in a comment today that while volatility in the crypto market increased in March, the correlation between BTC and other asset classes continued to decline.
“Bitcoin's correlation with other markets and BTC-related stocks rose in January with increased volatility, but has since dropped and there is a negative correlation between gold and BTC.”
Reyese said that Bitcoin's correlation with other asset classes is "usually not strong or long-lasting," making it "suitable for retail and institutional investors to diversify their portfolios."
These comments came after BEQUANT said in a report that the correlation between Bitcoin and traditional markets such as the US S&P 500 stock index, the Nasdaq stock index and gold increased in January. Among these traditional asset classes, the correlation between gold and bitcoin is now in negative territory, according to the report.
In a report they published together, ByBit and Nansen wrote that besides bitcoin, there are other ecosystems that investors should pay attention to in April.
The report said Avalanche was one of the leading ecosystems to watch in April, mentioning the gradual increase in the number of daily transactions and the transition of users to several subnets on Avalanche.
"This is a positive sign for the network."
In addition, Terra was brought to the agenda as an ecosystem to be watched in April, with steady increases in both daily active addresses and daily transaction numbers on the network.
In the report, which includes comments about Terra, it was stated that despite the increase in usage, transaction fees on the network are decreasing. The following statements were included in the report:
“This is believed to be a healthy on-chain growth indicator, showing increased activity within the ecosystem along with positive price action.”
It was also stated that it was definitely positive for Terra that the team added BTC to their reserves to partially support the UST.