Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Bitcoin Quiets Down in July After a Tumultuous First Half of 2023

Bitcoin Quiets Down in July After a Tumultuous First Half of 2023

CoindeskCoindesk2023/07/11 21:41
By:Coindesk

While July has historically been one of Bitcoin’s strongest months, the largest crypto by market value’s price has remained range-bound so far this month.

Bitcoin is trading unusually flat for July, a sign that investors are reluctant to chase the 21% price increase of the past month. Wednesday’s Consumer Price Index (CPI), the first, significant inflation data since mid June, may establish whether the range-bound trading pattern continues. A continued decline could buoy investors, while a flattening or increase could stifle them.

This year has been strong for bitcoin, with prices up 84% year to date. However, month-to-month data shows that much of the gains occurred during the winter, with January and March registering average daily returns of 1.11% and 0.73% respectively.

June performance was strong as well, with its 0.41% average daily gain largely driven by BlackRock’s spot ETF announcement. February and April were relatively flat, while May has been BTC’s only negative performing month this year.

Historically, July has been strong for bitcoin. Since 2014, BTC has risen an average 0.39% in July, third highest among all months. When measuring from 2020, July finishes second (to October), with a 0.57% average daily gain. Extrapolated over 30 trading days, the performance amounts to approximate monthly gains of 12% and 19%, respectively.

CoinDesk - Unknown

This has not been the case for 2023 however, as the average daily gain in July has been just 0.03%, approximately 0.93% higher if calculated over 30 days.

While bitcoin’s price has trended higher throughout 2023, the trajectory of daily gains by month has moved in the opposite direction. For all of the excitement around BTC’s rise, it's still a beginning-of-the-year phenomenon.

CoinDesk - Unknown

Pessimistic investors would likely consider the trend concerning for BTC prices. Optimistic ones would likely anchor to the fact that bitcoin has maintained its early year increase.

On-chain data from indicates that 74% of bitcoin addresses are in profit, which likely scores one for the bulls. A high percentage of BTC holders in profit implies an investor base likely to hold its current position, especially following the sharp 2023 run-up.

A potential headwind exists in Wednesday’s CPI release, the first key inflationary data since the middle of June. Forecasts indicate that month-over-month prices increased 0.3%. A larger increase could potentially weigh on prices. Still, with markets already expecting the Federal Open Market Committee (FOMC) to raise interest rates in July, it would likely take a huge increase to move prices significantly.

Finally, the CoinDesk Indices Bitcoin Trend Indicator continues to signal that BTC is in a significant uptrend, a sign that short-term prices are moving higher than long-term averages.

This article was written and edited by CoinDesk journalists with the sole purpose of informing the reader with accurate information. If you click on a link from Glassnode, CoinDesk may earn a commission. For more, see our .

Edited by James Rubin.

23

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

VIPBitget VIP Weekly Research Insights

Last week, Vitalik Buterin and CZ hosted the DeSci (Decentralized Science) conference at Devcon, where Vitalik unveiled the first DeSci product. CZ also expressed ambitions to see 1000 DeSci products next year, sparking widespread attention to the DeSci concept across the industry. Key speculative projects, RIF and URO, each surpassed a market cap of $100 million. As the sector continues to grow, DeSci remains an area worth close attention.

Bitget2024/11/22 06:24

As Bitcoin Hits $100,000, Analyst il Capo Still Not Convinced: 5 Reasons Why

As Bitcoin races from record to record, analyst il Capo urged his followers to be careful in a message he published.

Bitcoinsistemi2024/11/21 22:22