Despite a rough June, Bitcoin might be on track for a strong rebound in July, although concerns like the Mt. Gox repayments are tempering optimism.
Bitcoin saw a nearly 7% decline in June, continuing its historical trend of underperforming during that month. Data from Coinglass, which tracks Bitcoin’s monthly returns since 2013, shows that Bitcoin usually dips in June, with an average decline of 0.35%.
However, history suggests a potential turnaround in July. Past data indicates that whenever Bitcoin has a downtrend in June, it typically rebounds the following month. Historically, Bitcoin has gained an average of 7.42% in July.
Over the past 11 years, Bitcoin has posted at least an 8% gain in seven of those Julys. Memecoin analyst Murad also noted on social media platform X that Bitcoin has shown strong rebounds in the first few weeks of July over the last six years, with gains of at least 28%.
Challenges Ahead
While historical trends are promising, some analysts warn that this July might not follow the usual pattern. They highlight significant factors that could impact Bitcoin’s price, such as the German government’s planned sale of a large amount of Bitcoin and the upcoming repayments from the Mt. Gox bankruptcy.
Mt. Gox Bitcoin Impact
The Mt. Gox repayments, set to begin in the first week of July, are expected to release around $8.5 billion in Bitcoin to creditors. This event has raised concerns about potential selling pressure on the market. However, some analysts believe the impact may be less severe than feared, with only about $4 billion expected to directly affect the spot Bitcoin market.
Summary Review: While historical patterns point to a potential rebound for Bitcoin in July, the market faces unique challenges that could influence its performance. Investors are cautiously optimistic but remain aware of the factors that could affect Bitcoin’s price trajectory this month.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
