- According to one trading firm, bitcoin has a median return of 9.6% in July and has a tendency to rise sharply.
- The price of Bitcoin has fluctuated between $59,000 and $74,000 since April, but past patterns point to a possibly positive July.
- Seasonal cycles can affect cryptocurrency prices and cause predictable fluctuations. Examples of these cycles include profit-taking around tax season in April and May and heightened demand in December.
After months of falls and rangebound trading, supporters of Bitcoin (BTC) may have cause for celebration in the upcoming weeks as potential seasonal cycles drive up the price of the largest cryptocurrency.
Due to billions of sales, impending selling pressure, withdrawals from exchange-traded funds (ETFs), and a high in negative sentiment among regular traders, Bitcoin has fluctuated between $59,000 and $74,000 since April.
However, July, a traditionally bullish month, may soon change that. After more than $900 million in withdrawals throughout the course of the month, U.S.-listed ETFs experienced inflows of around $130 million on the opening day of the month, the biggest amount since early June.
According to a Telegram broadcast on Monday, Singapore-based QCP Capital said that Bitcoin has a median return of 9.6% in July and has a tendency to recover sharply, particularly following a bad June (-9.85%).
Additionally, flows were setting for an upward move last Friday into the end of the month, perhaps in advance of the debut of the ETH spot ETF, according to our options desk. Numerous indicators suggest a positive July, according to QCP.
According to research, bitcoin has increased in value by more than 11% on average throughout the past ten years in July, with seven of the ten months showing positive returns.
According to a 2023 report by cryptocurrency firm Matrixport, July returns from 2019 to 2022 have been roughly 27%, 20%, and 24%, respectively.
The propensity of assets to undergo consistent, yearly variations that are regular and predictable is known as seasonality. Although it may appear random, there are a number of potential explanations, such as profit-taking during the tax season in April and May, which leads to drawdowns, or the normally positive Santa Claus rally in December, which indicates more demand.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
