Coinbase Analysts Attribute Bitcoin’s Decline to Seasonal Trends

The cryptocurrency market has encountered a typical August downturn, according to analysts from the bitcoin exchange Coinbase, reports The Block.

“In August, seasonality usually does not favour cryptocurrencies,” stated analysts David Duong and David Han in a note.

They noted that historically, this month has seen a decline in market activity. In August 2023, the spot trading volume of the leading cryptocurrency fell by 19%, and futures trading by 30% compared to June.

“Bitcoin has fallen by an average of 2.8% during this month over the past five years. A decrease in liquidity and trading volume could lead to increased volatility in August,” the analysts added.

Jag Kuner, head of derivatives at Bitfinex, concurs. He identified seasonality as one of the reasons for a potential liquidity shortage in many digital assets in August.

“We see significant buy walls being built at lower ranges for several altcoins. We also expect the price of bitcoin to range from $61,000 to $70,000, providing an accumulation zone,” Kuner noted.

On July 31, the Fed maintained the key rate. Against this backdrop, bitcoin showed a restrained correction to $66,400.

On August 1, the leading cryptocurrency fell below $63,000, and on August 3, it breached the $62,000 level.

Earlier, analysts at Standard Chartered predicted that digital gold would reach a new all-time high in August. They expect bitcoin to soar to $100,000 by the US presidential elections in November.

In June, Robert Kiyosaki, author of the bestseller “Rich Dad, Poor Dad” and entrepreneur, predicted the leading cryptocurrency would reach $300,000 by August 25.