Bitcoin Expected to Rebound in July Despite Mt. Gox Repayments, Say Analysts
Summary:
Analysts anticipate a strong recovery for Bitcoin following its 7% drop in June. Historically, the cryptocurrency has posted average gains of 7.42% in July after a poor June. Analyst Murad notes Bitcoin seeing a minimum gain of 28% in early July for the past six years. Despite this, potential challenges lie ahead with the German government's Bitcoin sales and the upcoming Mt. Gox repayments. The latter could see $8.5 billion in BTC repaid to creditors, although only $4 billion may impact the BTC spot market.
Several market analysts predict a robust recovery for Bitcoin (BTC) in July, following a disappointing June that saw the cryptocurrency's value dip by almost 7%. Coinglass data illustrates that Bitcoin's price depreciated by as much as 6.96% in June, a month that has traditionally brought an average 0.35% decline since Bitcoin's inception in 2013. Crypto market analyst Ali Martinez mentioned in a June 30 X post that historically, Bitcoin bounces back in July whenever June sees a decline, with the crypto asset recording average gains of 7.42%. An analysis shows that Bitcoin posted a minimum monthly gain of 8% in seven of the past eleven July trading cycles.
Data from CoinGlass shows Bitcoin typically rallies in July after a weak June performance. Cryptocurrency analyst 'Murad' also highlighted this trend in a post to his substantial follower base of 103,000 on X, drawing particular attention to the swift rebounds that usually begin from July. He highlighted that Bitcoin has consistently recorded a minimum gain of 28% in the initial weeks of every July for the last six consecutive years.
Nonetheless, some analysts are cautioning that Bitcoin might confront more challenges this July, referencing large scale Bitcoin sales conducted by the German government and impending repayments linked to the infamous Mt. Gox incident, both of which could potentially exert downward pressure on Bitcoin prices.
Bitcoin creditors of the Mt. Gox incident are expected to be reimbursed about $8.5 billion in BTC from the first week of this month onward. However, many market watchers perceive the potential impact to be less monumental than initially assumed, with only $4 billion directly influencing the spot BTC market.
Jonathan de Wet of digital asset trading firm ZeroCap shared with Cointelegraph last week that Bitcoin had exhibited strong performance trading in the low to mid $60,000 range in spite of various adversities. He anticipates the cryptocurrency would hover at this level, albeit with the caveat of a potential slide towards its key support level of approximately $57,000 in the impending weeks as a result of Mt. Gox repayments being released into the market.
As per historic data, Bitcoin's top performance per month typically unfolds in November, with an average monthly surge of 46.81% since 2013.
Published At
7/1/2024 7:41:22 AM
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