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The best times to convert Bitcoin to AUD: A seasonal analysis

Bitcoin’s volatility is well-known, but what if you are able to predict better times to make purchases? That is something interesting!

As a potential investor you have a great idea that the bitcoin markets can be erratic, so, you can find that certain patterns happen every year based on events, seasons and local markets.

Tracking the bitcoin to AUD rate can be useful for Australians when they decide to convert.

This guide will debunk how changes in seasons, the economy and the market impact how we create conversion strategies for your better understanding.

Understanding seasonal trends in the Crypto market

Seasonal trends affect many financial markets, and cryptocurrency is no exception. Though Bitcoin is not linked to governments, people’s investment habits are still closely connected to things like holidays, tax dates and world-wide happenings.

Usually, Q1 includes bigger trading volumes because investors rebalance their holdings at the start of the year. At this stage, volatility may rise and occasional price falls can be a good time to purchase or convert your money.

In contrast, during Q4, the market tends to rise because of the growth from the previous months and in this time, institutional activity picks up.

How the Australian financial calendar affects BTC to AUD rate

In Australia, people follow certain calendar events when it comes to financial planning such as EOFY in June, times to submit tax returns and deadlines for Superannuation payments.

These events tend to make people change their investment approaches such as investing in cryptocurrency.

During EOFY, you can choose to sell your assets to calculate gains or losses for tax reasons. Increased activity within this trading platform might make the bitcoin to AUD rate fluctuate fast.

Likewise, interest rate choices by the Reserve Bank of Australia, changing levels of commodity exports and the nation’s trade balance affect the Australian dollar and consequently play a role in determining how BTC is interpreted.

When has BTC to AUD historically peaked?

Looking at historical charts, certain months stand out. April and October, for example, have traditionally seen bullish trends in the crypto space. After a volatile first quarter, April provides a boost for Bitcoin and October begins Bitcoin’s strong fourth quarter.

In contrast, June and September are known to demonstrate weaker results for the market because people become tired during the middle of the year or new regulations may cause uncertainty.

To get the most when you convert BTC to AUD, you should pay attention to these trends and try to exchange your assets at the best time.

Impact of global events on seasonal BTC to AUD conversions

While seasonal trends help, it’s essential to factor in global macroeconomic events. There was a major switch in market behaviours for all asset classes in 2020 because of the COVID-19 pandemic.

Also, changes in government policy by the US Federal Reserve or important updates in Asian markets can cause Bitcoin and AUD to move the same way.

Although the value of Bitcoin has not changed, a weaker Australian dollar could result in bigger returns for Australians if they convert their cryptocurrency.

Good economic performance in Australia could make the AUD rise which would reduce the worth of your BTC compared to the AUD.

Tips to time your Bitcoin to AUD conversions strategically

You don’t need to have supernatural powers to convert at the right time, you do need to stay updated. Below are some approaches you can use:

Observe news for upcoming interest rate decisions by the RBA and forecasting for the Australian economy.
See how cryptocurrencies have performed in the past by using online analytics.
Social media, Google Trends and blockchain-related data may give insight into how different groups of investors feel.
Rather than trading everything in one go, sell a portion at a time so the market changes less.

If you use these tactics and learn about bitcoin to AUD market cycles, you will be able to decide confidently.