Historically, April Has Been a Strong Month for Crypto

Historically, April has been a strong month for crypto, and traders hope for a repeat this year. Several tokens will see major unlocks this week, including Wormhole, Optimism

April is usually a strong month for crypto, and traders will be hoping for a repeat of that trend in 2024. Several tokens will also see major unlocks this week, including Optimism (OP), Sui, ZetaChain (ZETA), and Wormhole (W).

Moreover, the markets are also bracing for several risks.

In the week of March 31 to 7 April, the crypto market will see both opportunities and risks.

Among the opportunities, traders will be hoping for a repeat of the historical trend of April being a month of strong growth. Since 2010, April has averaged a 27% return for Bitcoin according to Barchart, which could bode well for the market.

Among the risks, traders are bracing for a potential tariff announcement by former US President Donald Trump on 2 April. So far, tariffs have put major pressure both on stocks and crypto, as traders are pricing in risks from potential economic damage the tariffs might cause.

Token Unlocks Next Week: Optimism, Sui, Zeta, and More

On Monday, Optimism (OP) will see an unlock event with 1.93% of the circulating supply or float hitting the markets. Around $28.67 million tokens will be unlocked and distributed to insiders. The large unlock and its distribution suggest that Optimism could face selling pressure this week.

On Tuesday, Sui will release 1.06% of its total float, amounting to $78.6 million in tokens. Out of these, $47.4 million in tokens will go to the community reserve, set for rewards. $17.52 million will go toward the Mysten Labs Treasury, to fund expenses, while $13.68 million will go to stakers. Since most tokens are distributed to holders rather than sold on the open market, the effect of the unlock is likely to be moderate.

Also on Tuesday, ZetaChain (ZETA) will have a major unlock event. Around $17.66 million tokens will hit the markets, equivalent to 6.05% of the float. The majority of the tokens will go to insiders, split between core contributors, advisors, and the treasury. This means that the potential price impact could be significant.

On Thursday, Wormhole (W) will see a massive unlock event, with $144.79 million in tokens unlocked. This represents 47.64% of the float and could induce significant volatility. Furthermore, the majority of these tokens will go to core contributors, which further increases selling potential.