The positive seasonality of July could be noteworthy for crypto traders. This is because Bitcoin and Ethereum have historically outperformed during the month. Analysts at QCP Capital say that Bitcoin’s median return in July was 9.6%. They also note that it recovered from a generally negative June. Coinbase analysts note a similar seasonal trend. Analysts suggest that favorable seasonality and improved liquidity could support the market.
“Many signs point to a bullish July!”
As you have been following on Kriptokoin.com, the market is showing signs of recovery. The leading cryptocurrency Bitcoin rose as high as $63,000. However, it is unclear whether this will continue. However, analysts say that the positive seasonality of July could be important for cryptocurrency investors. Because both Bitcoin and Ethereum have historically outperformed during this month. In a report published on Monday, QCP Capital analysts highlighted the following points:
From a seasonal perspective, BTC has a median return of 9.6% in July. It also tends to bounce back strongly, especially after a negative June, when it fell 9.85%, and many signs point to a bullish July. Bitcoin options were also positioned for an upside move to the end of June last Friday.
Bitcoin and Ethereum have historically performed well in July!
Coinbase analysts David Duong and David Han also note the same historical seasonal trend. “Favorable seasonality and increased liquidity in July could support the market,” the analysts wrote in the Coinbase weekly report. According to Coinbase analysts, both Bitcoin and Ethereum have historically outperformed others during this month, especially after the sell-off in June. Therefore, the positive seasonality could hold true in July. In this context, analysts make the following assessment:
The current market setup looks supportive. Because after the Mt. Gox announcement, a lot of long positions were cleared. Moreover, liquidity may increase after average daily volumes for Bitcoin and Ethereum on global exchanges fell 16.7% between May and June, from $90 billion to $75 billion.
Mt. Gox payments will hamper BTC?
Bitcoin, however, has been a major source of liquidity for Mt. Gox creditors in BTC and Bitcoin Cash (BCH) could face selling pressure this month. According to JPMorgan analysts, these creditors are expected to sell some of their Bitcoin receivables, initially putting pressure on the market, but with the potential for a rebound starting in August.
The leading cryptocurrency started July by rallying from the $60,000 area to the $63,500 level on Monday, following a brief dip to the $59,000 area last week. The rally followed a rebound in spot Bitcoin ETF inflows, which reached $73 million in net inflows on Friday, the highest daily inflow in two weeks.
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