August is typically marked by reduced cryptocurrency market activity and a slump in the value of major tokens, according to Coinbase analysts.
Points
- August sees lower market activity and declining values for major tokens.
- Bitcoin spot and futures volumes historically drop in August.
- Reduced liquidity and trading volumes lead to increased volatility.
- Analysts predict similar trends for August 2024.
August has historically been a challenging month for the cryptocurrency market, with reduced activity and declining values for major tokens, according to Coinbase analysts David Duong and David Han. In their weekly report, they noted that Bitcoin spot volumes dropped by 19% in August 2023 compared to June, with futures volumes also declining by 30% across global centralized exchanges.
Bitcoin averages a 2.8% decline in value during August over the past five years, due to lower liquidity and trading volumes. This trend is expected to continue in August 2024, with significant buy walls forming at range lows for several altcoins.
Bitfinex Head of Derivatives Jag Kooner echoed these sentiments, predicting that Bitcoin will range between $61,000 and $70,000, providing an accumulation zone for traders. At the time of publication, Bitcoin traded around $65,189, up 1.2% over the past day.
解説
- The seasonal downtrend in August highlights the cyclical nature of the cryptocurrency market and the impact of reduced trading activity.
- Lower liquidity and trading volumes can lead to increased volatility, presenting both risks and opportunities for traders.
- Historical data and trends are crucial for predicting market behavior and making informed trading decisions.
- Accumulation zones can offer strategic entry points for long-term investors during periods of market downturn.
- Understanding seasonal patterns helps traders and investors navigate the market more effectively, minimizing risks and maximizing potential gains.