Leading cryptocurrency exchange Kraken claims that Bitcoin could close the year with a big spike.
In a new report, Kraken noted that Bitcoin typically records the best annual performance in the last three months of the year (Q4).
“3. Despite the fact that the quarter was a positive quarter for BTC, the fourth quarter is historically in order. It should be noted that it is the best quarter of BTC with +119% and +58% returns.”
Kraken states that based on the average return recorded over the years, Bitcoin could end the year with close to $100,000.
“With BTC’s Q3 closing price of $43,800, a 119% return in Q4 2021 would push BTC to around $96,000.”
According to Kraken, a median return of 58% would allow Bitcoin to close the year at $69,000. Bitcoin is trading around $54,800 at the time of writing, which indicates a 25% upside potential.
The exchange also adds that October tends to be a more volatile month for Bitcoin than September. Bitcoin is up nearly 25% from October’s opening price of $43,820.
“When the focus is shifted to October, the month will typically be seen to be more volatile than September (61% vs. annual average volatility 66%) and BTC tends to finish +13% higher when looking at historical averages. While October promises to be a favorable month for BTC, it should be noted that November and December are equally favorable for bulls.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.