Coinbase analysts said August is usually a month when cryptocurrency market activity declines and major tokens see a plunge in value.
“Seasonality generally has not been favorable for cryptocurrencies in August,” Coinbase analysts David Duong and David Han said.
In Friday’s Coinbase Weekly report, analysts added that August has historically been a month of low market activity. For example, Bitcoin spot trading volumes were down 19% in August 2023 compared to June of that year. They said Bitcoin futures trading volumes were down 30% on centralized exchanges worldwide during the same period.
“Bitcoin Bitcoin
-4.15%
August is a month where lethargic behavior can occur.
In an interview with The Block, Bitfinex derivatives head Jag Kooner said that liquidity could be tight for many assets in August, and that seasonality in August could be one reason for that.
“There is significant buying pressure currently forming at the range bottoms for several altcoins, and we also see Bitcoin price trending between $61,000 and $70,000, creating an accumulation zone,” Kuhner added.
Bitcoin At the time of publication, it was trading at around $65,189, up 1.2% over the past day. Bitcoin price page on the block.
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