Bitcoin typically performs well in July, but Mt. Gox repayments could exert downward pressure on the price of the crypto asset.
Bitcoin’s price struggled through out June, but history data shows that the leading cryptocurrency usually record a bullish rebound in the month of July.
According to data from Coinglass, which tracks bitcoin’s monthly returns since 2013, BTC has historically averaged a 0.35% decline in June. However, the asset experienced a 7% decline last month, making it one of the worst June in the history of Bitcoin.
Interestingly, the data further revealed that BTC usually see a strong recovery after the end of June, with an average of 7.42% gain in July.
Murad Deeps Into Bitcoin’s Historic Trend
Memecoin analyst Murad briefly reviewed Bitcoin’s historic trend on X, highlighting the rapid historical rebounds that typically start in July. He stated that the crypto asset has consistently posted minimum gains of 28% in the first few weeks of July for the past six years.
However, several analysts predict a potentially challenging July. They attribute it to the substantial bitcoin sale by the German government and the upcoming Mt. Gox repayments, which could exert downward pressure on the asset’s price.
The repayments, totaling approximately $8.5 billion worth of BTC, are expected to commence in July to refund creditors. However, some analysts argue that the market impact of these repayments might not be as significant as anticipated, as only $4 billion is expected to enter the spot Bitcoin market.
Will BTC Drop in July?
In a recent interview with Jonathan de Wet, chief investment officer at digital asset trading firm ZeroCap, noted that BTC has maintained strong trading around the low to mid $60,000 range despite facing significant headwinds.
He also noted that the cryptocurrency would remain near the $60,000 level. Still, he acknowledged the possibility of dropping to its key support level of roughly $57,000 in the coming weeks due to Mt. Gox creditor repayments affecting the markets.
As of the time of writing, bitcoin was exchanging hands above $62,800, a 2.3% gain since the start of July.
