Bitcoin Primed for Bullish July Amid Market Recovery Signs

By: Eliza Bennet

Several market analysts forecast a promising rally for Bitcoin in July following a challenging June where the cryptocurrency saw a decline of approximately 7%. The dip was largely attributed to significant selling pressure from Bitcoin miners, who sold around $2 billion worth of their holdings due to declining revenues. Additionally, selling from government reserves, including those of the United States and Germany, added to the downward pressure on the BTC market.

Bullish Indicators

Expectations for a recovery in July are informed by several bullish indicators identified by market observers. Singapore-based crypto trading firm QCP has noted that historical patterns suggest Bitcoin typically sees a median return of 9.6% in July, often rebounding strongly after a negative June. The firm reported that Bitcoin exchange-traded funds (ETFs) have recently recorded their highest daily inflow in two weeks, with $73 million worth of funds flowing into the financial instruments on June 28. This substantial inflow is seen as a sign of market preparation for an upward move, alongside positioning by the firm’s options desk for an expected upswing.

Crypto trader Rekt Capital also supports the bullish outlook, indicating that Bitcoin is poised to form a cluster of price actions that could result in a rally towards the Range High at $71,500 over the month. The sentiment echoes a broader optimism within the crypto community about Bitcoin's price trajectory.

Implications of US Political Climate

While the crypto market tends to be influenced by a range of factors, political developments in the U.S. could play a significant role in Bitcoin's performance moving forward. Crypto research firm 10x Research highlighted that Bitcoin has rallied by 4% as U.S. President Biden moves to block other Democratic candidates from running against former President Trump. However, the firm cautioned about the sustainability of this trend in the long term.

Concerns have also been raised about President Joe Biden's ability to lead the Democratic campaign in the upcoming November elections, especially after his recent debate with former President Donald Trump raised some eyebrows. Political uncertainties about the upcoming elections and the general economic outlook, including U.S. Federal Reserve policy and inflation, are expected to add volatility to Bitcoin’s trading in the near future.