Key Takeaways:
- Bitcoin held the $45,000 support, consolidating sideways.
- The alpha crypto could benefit from the risk asset correlation in April.
- Gemini's "Global State of Crypto" report indicated a rising demand for crypto.
YEREVAN (CoinChapter.com) – Bitcoin (BTC) traded at over $46,200 ahead of the European session on Apr. 4, after a week of sideways consolidation. The leading digital asset held the $45,000 support, while the trading volumes have been declining steadily since late March, hinting at a possible trend reversal.
However, some traders might hope for an upward impulse, after all, based on Bitcoin’s persisting correlation with equities. As Coinchapter previously reported, the said correlation peaked in the previous month, while Arcane Research called it “unprecedented.”
Bitcoin and stocks; what to expect?
Thus, the crypto market might also follow suit if the stock market recovers in April, a historically strong month for equities. Moreover, according to Sam Stovall, the chief investment strategist at CFRA, S&P 500 (SPX) rose an average of 1.7% in April, 70% of the time since WWII, which constitutes the most profitable month of the year for the stock market.
However, the Bitcoin market focus in the week ahead will remain on developments around the Ukraine war and the Federal Reserve. The latter will release its March meeting minutes on Wednesday. Further meeting details could shed more light on the market climate, giving Bitcoin bulls a chance to adjust their expectations.
Also read: BTC holds above $47.5K while Grayscale on the outs with SEC over Bitcoin spot ETF.
Meanwhile, crypto research platform Gemini released a “Global State of Crypto” report, focusing on 2021 statistics.
Gemini report claims a broader crypto adoption.
According to the 2021 annual report, venture capital investment exceeded $30 billion in crypto and blockchain startups, with more than $10.5 billion in Q4 alone. Additionally, the report surveyed nearly 30,000 adults across 20 countries to uncover trends in crypto ownership.
Forty-one percent of crypto owners surveyed globally purchased crypto for the first time in 2021.
read the report.
More than half of crypto owners in Brazil (51%), Hong Kong (51%), and India (54%) got started in 2021. Globally, 41% of respondents said they are crypto-curious.
The statistics were almost twice as high as the year prior. Moreover, the survey registered that the likelihood of broader crypto adoption varied geographically and depended on inflation.
Also read: Bitcoin hits $47.5K but its correlation with U.S. equities spells extreme selloff risks.
The respondents in countries that have experienced 50% or more devaluation of their currency against the USD over the last ten years were more than five times as likely to say they plan to purchase crypto in the coming year. 40% of crypto owners see crypto as a hedge against inflation.
Does crypto adoption depend on general welfare?
Gemini also researched crypto ownership across the globe and found a dispersion across countries. Brazil and Indonesia led the pack, with 41% of the population owning cryptocurrencies. Also, developing countries agreed with the “crypto is the future of money” statement far more than developed countries.
For example, 63% of respondents in Brazil felt positive about the statement. However, the same statistic in Denmark stood at 12%.
Also read: Bitcoin marks 2022's highest weekly close as Rio plans to accept BTC for real estate taxes.
While Gemini called cryptocurrencies an “established asset class,” the research results speak of a possible sanctuary status reestablishment for Bitcoin in the coming year, given the respondents’ use of it as an inflation hedge. However, as mentioned above, the crypto market is heavily dependent on risk assets and the geopolitical instability in Europe, leaving no room for solid predictions.
