History repeats itself, and this time around, that is great news for bitcoin holders. Over the past six years, bitcoin prices have rallied by about 7% in July. That could help the asset recover from the losses it witnessed in June, which also was around 7%.
The first few days of July have already been good for the largest cryptocurrency, pushing above $63,000 on the first and second days of the month. Bitcoin looked like it would remain below the $60,000 mark in the last week of June, but the rebound in its price has holders delighted, anticipating greater spiking.
Historic data also suggests that bitcoin can go up to 28% in the first weeks of July. Some analysts feel this July may be different, with the expected gains possibly not materializing due to several factors. For starters, several short-term holders who got into the asset very recently and observed their holdings fluctuating in the red will liquidate the asset when bitcoin hits $65,000.
The selling pressure may pose resistance to bitcoin’s price rally, causing its price to fall or prevent it from rising beyond $65,000. Also, other factors include Mt. Gox repayments and the German government selling its bitcoin stashes. Mt. Gox will expectedly begin returning about 140,000 bitcoins to its creditors who lost their assets held because of the defunct exchange as a result of it experiencing exploits for over two years.
Moreover, the German government started selling its bitcoin holdings to exchanges like Coinbase and Kraken in June. Germany’s Federal Criminal Police Office (BKA) seized about 50,000 bitcoins from a movie piracy site multiple years ago. It has finally begun liquidating assets, conducting numerous transactions so far.
As more bitcoins enter supply through Mt. Gox and the German authority, the asset’s price is expected to witness pressure. How it handles that pressure is something July will reveal.
Image by Benjamin Nelan from Pixabay
