How volatile is Bitcoin in April?

Crypto investors are getting ready for a busy second quarter. With a Bitcoin halving only a few weeks away, rumors about an impending approval of an Ether ETF circling the markets and macroeconomic pressure from a possible interest rate decision by the Federal Reserve, prices could go in either direction.

The Bitcoin price is at this moment still trading between $65,000 and $70,000, a level it has held for almost a week now. What’s next?

Bitcoin halving in April

First up is the Bitcoin halving. According to the latest calculations, it will take place between April 18 and 22. As from that moment, the reward for Bitcoin miners will decrease from 6.25 Bitcoins per block to 3,125 Bitcoins.

Historically, the price of Bitcoin rises before and after the halving, but this time may be different because the largest digital coin is already trading at a record price and we also don’t know if many of the smaller Bitcoin mining companies will still be profitable after the halving.

Pending Ether ETF

Secondly, there are growing rumors of a pending Ether ETF approval. Several companies on Wall Street (BlackRock, Fidelity, etc.) have submitted an application for such an Ether ETF, and especially after the success of the Bitcoin ETFs this year, investors expect a lot from it.

The fact that Ether is more acceptable to ESG investors than Bitcoin due to its environmental friendliness can also provide a new impetus for the market. However, it is still unclear if and when the SEC would approve such an Ether ETF.

Bitcoin is more dependent on macroeconomic data points

Finally, due to the amount of money from Wall Street pouring into crypto right now, Bitcoin is much more dependent on macroeconomic data points to move its price. Data such as interest rate decisions from the Federal Reserve or the monthly jobs report in the United States could therefore strongly influence the price of Bitcoin in the second quarter.

So far, 2024 has been very good for Bitcoin. It remains to be seen whether the second quarter will bring more of the same.