Bitcoin Could Experience a Strong Recovery in July Despite Lackluster June Performance
After a disappointing month of June that saw Bitcoin’s value decline by almost 7%, there are indications that the cryptocurrency could bounce back in July.
Historical data from Coinglass, which tracks Bitcoin’s monthly returns since 2013, reveals that June has historically been a challenging month for Bitcoin, with an average slump of 0.35%. However, whenever June ended on a low note, the following month witnessed a significant resurgence, with Bitcoin recording an average gain of 7.42%.
Furthermore, over the past 11 July trading periods, Bitcoin has consistently posted minimum monthly gains of 8% for seven of them, indicating a trend of positive performance during this time.
Renowned Memecoin analyst Murad, who boasts a substantial following of 103,000 on X, also emphasized this pattern in a recent post. Murad highlighted that Bitcoin has consistently registered minimum gains of 28% in the initial weeks of every July for the past six years.
However, some analysts caution that July might present additional challenges. They point to the German government’s sizable sale of Bitcoin and the impending Mt. Gox repayments, both of which could exert downward pressure on Bitcoin’s price.
The Mt. Gox repayments, set to commence in early July, are expected to involve approximately $8.5 billion worth of BTC being paid back to creditors. Nevertheless, analysts believe that the impact of these repayments may not be as severe as anticipated, as only $4 billion is expected to enter the spot BTC market.
Jonathan de Wet, the chief investment officer at ZeroCap, a digital asset trading firm, remains optimistic about Bitcoin’s resilience. He stated that despite prevailing headwinds, Bitcoin has been trading strongly within the low to mid $60,000 range. De Wet anticipates that the asset will maintain this level but acknowledges the possibility of a decline to the “key support” level of around $57,000 as the Mt. Gox creditor repayments take effect.
While November historically proves to be Bitcoin’s best-performing month, with an average monthly gain of 46.81% since 2013, July holds promise for a potential rebound in Bitcoin’s value.
In conclusion, despite a lackluster performance in June, Bitcoin’s historical trends suggest that July could bring about a strong recovery. However, analysts warn of potential challenges stemming from the German government’s Bitcoin sale and the imminent Mt. Gox repayments. Nonetheless, the overall outlook remains cautiously optimistic for Bitcoin’s performance in the month ahead.