Bitcoin, the leading cryptocurrency, is anticipated to make a recovery in July following a disappointing performance in June. Analysts have observed a 7% drop in Bitcoin’s price last month. Historical data from Coinglass, which has been tracking Bitcoin’s monthly returns since 2013, reveals that June typically sees a small decline of 0.35% for Bitcoin. However, July has historically been a strong month for Bitcoin, often compensating for the June decline.
A crypto market analyst, Ali Martinez, has pointed out that Bitcoin typically rebounds strongly in July after a decline in June. Martinez stated that Bitcoin historically gains an average of 7.42% in July following a negative June. Additionally, Bitcoin has seen gains of at least 8% in seven of the last eleven Julys, reinforcing the trend of a mid-year recovery.
Another analyst, Murad, shared similar sentiments with his 103,000 social media followers, emphasizing that Bitcoin has consistently achieved at least 28% gains in the first few weeks of July over the past six years. This historical trend has generated optimism among Bitcoin investors for a similar performance this year.
However, several factors could make July more challenging for Bitcoin compared to previous years. Analysts have expressed concerns about significant Bitcoin sales by the German government and the upcoming repayments from the defunct Mt. Gox exchange. The Mt. Gox repayments, expected to begin in early July, involve returning approximately $8.5 billion worth of Bitcoin to creditors. This could potentially increase selling pressure in the market.
Despite these concerns, some analysts believe that the impact of the Mt. Gox repayments might be less severe than expected, with only about $4 billion of the $8.5 billion likely to enter the spot market. Such a development could alleviate some of the downward pressure on Bitcoin’s price.
Jonathan de Wet, the Chief Investment Officer of the digital asset trading firm ZeroCap, has noted that Bitcoin has been trading steadily from below $60,000 to $65,000 despite various adversities. He expects Bitcoin to maintain this range but warns that the price could drop to the key support level around $57,000 due to the Mt. Gox repayments.
While July is generally favorable for Bitcoin, upcoming challenges could test this trend. Historically, Bitcoin’s strongest monthly performance has occurred in November, with an average monthly gain of 46.81% since 2013. Investors should be aware of the high volatility and risk associated with cryptocurrencies and conduct their own research before making any investment decisions.
