July’s positive seasonality could be significant for cryptocurrency investors, as both bitcoin and ether historically perform better during this month, analysts say.
Bullish Outlook for July
- QCP Capital analysts reported that bitcoin has a median return of 9.6% in July and often rebounds after a negative June, where it fell -9.85%.
- Coinbase analysts David Duong and David Han also noted the same historical seasonal trend, suggesting that “positive seasonality in July and improved liquidity could support the market.”
Bitcoin and Ether Trends
- According to Coinbase analysts, positive seasonality could be relevant in July, as both Bitcoin and ether historically seem to do better during this month than others, particularly after sell-offs in June.
- The current market setup looks supportive, as a lot of excess length has been cleaned out following the Mt. Gox announcement, and liquidity could improve after daily average volumes for bitcoin and ether (spot and futures) across global exchanges declined by 16.7% between May and June from $90 billion to $75 billion.
Bullish Start to July
“Bitcoin BTC +2.31% started July by surging from the $60,000 region to a high of $63,500 on Monday, after last week’s brief fall into the $59,000 region. The rally followed a recovery in spot bitcoin exchange-traded fund (ETF) inflows, which reached $73 million in net inflows on Friday, the highest daily inflow in two weeks.”
In conclusion, analysts are optimistic about the potential for a strong July for both bitcoin and ether, based on historical trends and the current market setup.