Bitcoin Closes Most Bullish Quarter Since Q1 2021

Despite navigating bank failures, ongoing inflation, and regulatory scrutiny from the SEC and CFTC, Bitcoin closed out what was one of the most bullish quarters since the start of 2021.

As the market now moves into Q2, investors are beginning to question if levels of investment during the second quarter of the year can live up to those from the first. 

Elsewhere, XRP peaks as rumors circulate regarding the Ripple vs SEC lawsuit, and hardware manufacturer, Ledger, secures over $109 million in funding.

• Bitcoin closes out most bullish quarter since Q1 2021
• Crypto investment increases for the fourth consecutive month
• XRP secures 40% increase for March
• Prominent crypto hardware wallet provider secures $109 million in funding

Bitcoin closes out most bullish quarter since Q1 2021

Despite the release of key inflation data, Bitcoin continued to remain stable last week before eventually closing out the first quarter of 2023: a quarter that has seen bullish momentum return to the world of cryptocurrencies. 

As highlighted by the 3-month chart, Q1 2023 was the first bullish quarter in over a year for Bitcoin, with the last bullish 3-month candlestick closing in Q4 2021. 

After four consecutive bearish quarters, the world’s leading cryptocurrency has managed to successfully navigate banking failures, ongoing inflation, and regulatory headwinds. 

It has been a refreshing change from the downturn of 2022.

After retesting the key level of resistance at $29,000, Bitcoin continued to push higher once again as Friday’s Personal Consumption Expenditures (PCE) price index figures were released. 

The index, which is favoured by the Federal Reserve as a measure of inflation, came in under expectations with a year-on-year increase of 4.6%. This was below economists’ predictions of 4.7%.

With inflation continuing to withdraw, many in the industry are hoping that this will continue to place pressure on the Federal Reserve’s hawkish monetary policy.

  3M chart of BTC/USD

Crypto investment increases for the fourth consecutive month

According to data from CryptoCompare, the amount invested in digital-asset products climbed for a fourth straight month in March – a dynamic potentially driven by the increasing prices of cryptocurrencies, such as Bitcoin and Ether.

The total assets under management in the crypto sector went up to $13.4 billion, marking a 10.9% increase from February and a 60% increase from November 2022 when the total sank to its lowest level of the year.

Investments in bitcoin-based products rose by 14% to $22.7 billion, while ether-related ones increased by 6.25% to $7.22 billion.

CryptoCompare’s report stated that “the increase in bitcoin market share was consistent with the surge in bitcoin dominance and the shift away from altcoins that investors have been making in response to the recent market turbulence.” 

CI Galaxy, a firm that manages funds investing in cryptocurrencies, also recorded the highest increase in assets for the second consecutive month, rising by 20.3% to $553 million. 

If cryptocurrency adoption continues to grow, investors will be watching closely to see if crypto market capitalization follows the same trend.

Monthly assets under management on exchange and over-the-counter products

XRP secures 40% increase for March

XRP, the digital asset associated with the Ripple network, has hit a new daily high for 2023. In fact, throughout March, the price has increased by more than 40%. 

At the beginning of March, prices were at 37 cents, but last week, XRP peaked at a yearly high of 57 cents: a price that XRP has not seen since the summer of 2022. 

But, this has left many looking for answers as to what has caused the latest rally.

According to market analysts, the majority of the hype surrounding XRP is due to hopes that the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple, the issuer and developer of XRP, could soon come to an end. 

However, there is no concrete evidence yet to suggest that this is the case.

As a result, the price rally appears to be purely speculative. 

With that being said, according to CoinDesk, open interest in XRP futures hit $800 million in March, which is the highest level since December 2021 – a factor that could be helping to drive bullish momentum.

It remains to be seen what will happen as we move into April, and whether XRP will be able to sustain its recent gains. 

Nonetheless, the continued interest in XRP demonstrates the continued potential of this cryptocurrency.

Weekly chart of XRP/USD

Prominent crypto hardware wallet provider secures $109 million in funding

Ledger, a leading hardware wallet provider, raised €100M ($109M) last week in a recent Series C funding round. The raise has valued the company at an impressive €1.3B ($1.4B).

Ledger is known as the go-to choice for crypto users worldwide, with its hardware wallet being a popular choice for the self-custody of assets. 

When starting out in crypto, users are often advised to get a hardware wallet and purchase cryptocurrencies from a non-custodial exchange such as Xcoins – a process that many have adopted since the collapse of FTX last year.

The recent funding round had contributions from VaynerFund, Cité Gestion SPV, True Global Ventures, and Digital Finance Group. Funds will be used to expand distribution networks, increase production, and develop new products.

For users who already trust and support Ledger products, the news of the company’s growth and expansion is exciting. Unlike many crypto companies that tend to perform in line with the crypto markets, Ledger stands out as a reliable choice for those looking to safeguard their assets.

“Whenever the market gets stressed and whenever people fear for their savings, you know, they rush to crypto and to Ledger,” said CEO Pascal Gauthier. In fact, following the FTX crash in November 2022, Ledger had its best sales month.

According to the Ledger team, their hardware wallets store more than 20% of crypto assets in circulation and 30% of the non-fungible tokens supply. 

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