{"id":632909,"date":"2024-08-03T05:00:57","date_gmt":"2024-08-03T05:00:57","guid":{"rendered":"https:\/\/wncen.com\/?p=632909"},"modified":"2024-08-02T17:29:11","modified_gmt":"2024-08-02T17:29:11","slug":"will-august-again-be-a-drag-for-bitcoin-heres-what-historical-data-says","status":"publish","type":"post","link":"https:\/\/wncen.com\/bitcoin-news\/will-august-again-be-a-drag-for-bitcoin-heres-what-historical-data-says\/","title":{"rendered":"Will August Again Be A Drag For Bitcoin? Here’s What Historical Data Says"},"content":{"rendered":"
In the Bitcoin and the overall crypto market, August has long been observed as a quieter month, with historical data showing a consistent downturn in both activity and asset value during this time of the year. Coinbase’s analysis<\/a> further highlights this pattern in its latest weekly report. According to Coinbase analysts David Duong and David Han, there is a noticeable reduction in trading volumes and a decrease in the market’s dynamism<\/a> that characterizes the month.<\/p>\n The analysts point out that this seasonal trend can’t be seen as a mere coincidence as it is a recurrent phenomenon. In the “Coinbase Weekly” report, they cited that Bitcoin spot volumes in August 2023 fell by 19% compared to June of the same year.<\/p>\n Related Reading: Bitcoin\u2019s Price Potential: Analyst Maps Path To $700,000 And Beyond<\/a><\/p>\n Similarly, Bitcoin futures volumes dipped by 30% across global centralized exchanges during the same timeframe. This decreased activity is significant enough to influence market behavior<\/a>, potentially leading to increased volatility due to thinner liquidity. The Coinbase\u2019s report further details that on average, Bitcoin has shown a decline of 2.8% in August over the last five years.<\/p>\n According to the analysts, this trend is not isolated to Bitcoin; it reflects a broader market behaviour<\/a> that could be attributed to various factors, including seasonal investment<\/a> shifts and lower participation rates during the summer months in many regions. They further predicted that this August may not stray from the established pattern, expecting a continuation of subdued market performance.<\/p>\n Echoing the sentiment from Coinbase, other prominent figures in the crypto space have shared their observations. Analyst Jelle pointed out<\/a> on Elon Musk’s social platform X that despite a positive close in July, the historical struggle of the market in Q3 is quite noteworthy, with recovery often not beginning until October.<\/p>\nAn Impending Major Dip For Bitcoin In August?<\/h2>\n
Outlook From Analysts In The Community<\/h2>\n