After a disappointing performance in June, the leading cryptocurrency Bitcoin is expected to rebound in July. Analysts emphasize that Bitcoin’s price fell by 7% last month. Coinglass, which monitors Bitcoin’s monthly returns since 2013, shows that Bitcoin typically underperforms in June, with an average decline of 0.35%. However, historically, July has been a strong month for Bitcoin, often compensating for the losses in June.
**Why Might Bitcoin Recover in July?**
Cryptocurrency market analyst Ali Martinez notes that after a weak June, Bitcoin usually experiences a strong rebound in July. Martinez points out that after negative growth in June, Bitcoin’s average increase in July is 7.42%. This pattern is supported by data showing that in 7 out of the past 11 Julys, Bitcoin has risen by at least 8%, reinforcing a mid-year recovery trend. Visit NEWSLINKER for the latest tech news.
Another analyst, Murad, shared with his 103,000 social media followers that in the past six years, Bitcoin has always risen by at least 28% in the first few weeks of July. This historical performance has sparked optimism among Bitcoin investors, who are hopeful for similar results this year.
**What Could Affect Bitcoin’s Performance in July?**
Compared to previous years, several factors could complicate Bitcoin’s July. Analysts are cautious about the German government’s large-scale sale of Bitcoin and the impending repayment of the bankrupt Mt.Gox exchange. The repayment of Mt.Gox is expected to begin in early July, involving the return of approximately $8.5 billion worth of Bitcoin to creditors, which could increase market selling pressure.
Despite these concerns, some analysts believe that the impact of Mt.Gox’s repayment may not be as severe as expected. They estimate that only about $4 billion of the $8.5 billion repayment might enter the spot market, potentially easing some of the downward pressure on Bitcoin prices.
**Key Insights for Investors**
Investment Returns:
Historical trends suggest that Bitcoin performs strongly in July, often offsetting losses from June. Based on past data, analysts predict an average increase of about 7.42% in July. The potential selling pressure from Mt.Gox’s repayment could affect July’s performance. Approximately $4 billion of the $8.5 billion Mt.Gox repayment could enter the market, thereby reducing the expected impact.
**Conclusion**
Jonathan de Wet, Chief Investment Officer at ZeroCap, observes that despite various challenges, Bitcoin’s trading remains stable between $60,000 and $65,000. He expects Bitcoin to maintain this range but warns that due to Mt.Gox’s repayment, Bitcoin’s price could fall to around $57,000, a key support level. Historically, Bitcoin performs strongest in November, with an average increase of 46.81% since 2013. While July usually favors Bitcoin, the upcoming challenges may test this trend.
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