July Rebound with Massive Inflows into ETFs?

Between price fluctuations and investor movements, it is difficult to predict with certainty the next big wave of Bitcoin. However, historical trends and recent massive inflows into Bitcoin ETFs suggest a potentially bullish July. What does this summer month have in store for the world’s largest cryptocurrency? Let’s dive into the details to try to unravel this mystery.

Seasonal cycles and their influences on Bitcoin

Seasonal cycles play a crucial role in the evolution of Bitcoin prices. Events like profit-taking approaching the tax season in April and May, as well as increased demand in December, can cause predictable variations in the cryptocurrency market.

Historically, the month of July has often been marked by a rise in Bitcoin prices, with a median return of 9.6% according to some trading companies.

Since April, Bitcoin has been oscillating between 59,000 and 74,000 dollars, a wide but significant range. This volatility is partly due to massive sales and fund outflows from ETFs.

However, the data shows that July is often favorable for Bitcoin, with average gains of more than 11% over the past decade. This seasonal trend could well be confirmed again this year, offering investors encouraging prospects.

The impact of massive ETF inflows

Massive inflows into Bitcoin ETFs are a key indicator of investor optimism. The first day of July saw inflows close to 130 million dollars into US-listed ETFs, their highest level since early June.

This influx of capital comes after a June marked by outflows of more than 900 million dollars. This turnaround is seen as a strong sign of confidence in Bitcoin’s bullish potential for the weeks to come.

Sydney-based QCP Capital noted that Bitcoin tends to rebound strongly in July, especially after a negative June. With a median return of 9.6% in July and a tendency to show positive returns 7 months out of 10 over the past decade, investors are positioning themselves to take advantage of this potential rise.

Moreover, the potential launch of a spot ETH ETF could also stimulate interest and strengthen the bullish prospects of the cryptocurrency market.

Forecasts and strategies of traders for July

In light of these encouraging signals, many traders are preparing for a bullish July. Data from Crypto Matrixport shows that July returns have been impressive in recent years, with gains of 27% in 2019, 20% in 2020, and 24% in 2021. This seasonality, although sometimes random, is explained by recurring trends in investor behavior.

Traders’ strategies often include taking long positions on Bitcoin in anticipation of these seasonal rises. The recent rise in ETF inflows indicates that institutional investors share this optimism and are preparing to take advantage of potential price increases. However, it is crucial to remain vigilant and closely monitor market indicators, as fluctuations can be rapid and unpredictable.

July looks promising for Bitcoin, with positive signals coming from seasonal cycles and massive ETF inflows. Traders and investors hope for a significant rebound, supported by growing optimism and historical trends. Nonetheless, the crypto market remains inherently volatile and unpredictable. The coming weeks will tell if these forecasts come to fruition or if new surprises await us despite the liquidation by the USA.

Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n’a cessé de se documenter sur le sujet. Si son premier intérêt s’est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l’état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.