Bitcoin has a history of posting positive returns in July, according to a report by Matrixport. The crypto-services provider expects the cryptocurrency to test the $40,000 level by the end of the year.
Bitcoin (BTC), the largest cryptocurrency by market cap, tends to rally in July, crypto-services provider Matrixport said in a report on Wednesday.
The report, titled “Bitcoin Seasonality: A Look at Historical Monthly Performance,” analyzed the bitcoin’s monthly returns over the last decade.
It found that bitcoin has gained by an average of more than 11% in July, with 7 out of 10 months showing positive returns.
The report said that the last three years have seen even higher returns of around 27%, 20%, and 24%, respectively, in July.
“While summer tends to be a period of consolidation for bitcoin, a strong July tends to be followed by a mediocre August and a selloff in September,”
Markus Thielen, head of research at Matrixport.Matrixport forecasts that bitcoin to rally toward $35,000 before selling off and retracing to $30,000. It then predicts another move higher to the $40,000 mark by the end of the year.
Matrixport added that the end-of-year target for bitcoin is $45,000, citing factors such as institutional adoption, regulatory clarity, and innovation in the crypto space.
The report also noted that bitcoin’s volatility had declined significantly since May when it peaked at over 130%. The current volatility level is around 70%, which is still higher than the historical average of 50%.
Matrixport is a Singapore-based company that offers crypto-related services such as trading, lending, custody, and asset management. It was founded in 2019 by former Bitmain executives and claims to have over $10 billion in assets under management and custody.
Here is the full report for more information on Bitcoin’s historical performance and seasonality.
