The Coinbase report underscores the seasonal downturn trends in the cryptocurrency market for August, noting significant declines in trading volumes and liquidity.
Points
- Historical data shows a trend of declining activity and values in August.
- Bitcoin spot volumes dropped by 19% in August 2023 compared to June.
- Bitcoin futures volumes fell by 30% across global exchanges.
- Analysts highlight the impact of lower liquidity and trading volumes on market volatility.
August has historically been a challenging month for the cryptocurrency market, with data from Coinbase highlighting a notable trend of declining activity and values during this period. According to the latest Coinbase Weekly report, analysts David Duong and David Han emphasize the seasonality impact on crypto, pointing to a decrease in trading volumes and liquidity.
The report reveals that Bitcoin spot volumes experienced a significant drop of 19% in August 2023 compared to June of the same year. Similarly, Bitcoin futures volumes plummeted by 30% across global centralized exchanges. This decline in trading volumes underscores the market’s reduced activity and liquidity during this time.
“Bitcoin averages a decline of 2.8% during this month over the last five years. Lower liquidity and trading volumes can lead to increased volatility,” the analysts explained.
Jag Kooner, Head of Derivatives at Bitfinex, also provided insights into current market conditions. He noted that significant buy walls are being established at range lows on several altcoins, and he anticipates Bitcoin’s price to oscillate between $61,000 and $70,000, creating a potential accumulation zone.
“We are currently observing significant buy walls being established at range lows on several altcoins. Additionally, we anticipate the Bitcoin price to oscillate between $61,000 to $70,000, creating a potential accumulation zone,” said Kooner.
The predictable seasonal patterns highlighted in the report emphasize the need for well-thought-out investment strategies and a deep appreciation for the recurring cycles within the cryptocurrency market. Investors are encouraged to exercise caution, carefully planning their moves to navigate the probable volatility while seizing potential advantages during these usually less active trading periods.
解説
- The Coinbase report sheds light on the seasonal downturn trends affecting the cryptocurrency market, particularly in August.
- Significant declines in Bitcoin spot and futures volumes indicate reduced market activity and liquidity.
- Understanding these patterns can help investors develop strategic approaches to navigate periods of increased volatility.
- Analysts’ insights into market dynamics and potential accumulation zones provide valuable guidance for making informed investment decisions.