The crypto market capitalization took a hit in June, falling 14% from a high of $2.78 trillion early in the month to around $2.4 trillion by the end of it. However, history may be on the side of crypto investors, as June has typically been a bearish month, and July has often seen a market recovery.
Reason 1 to be bullish for July on this last day of bearish June pic.twitter.com/E5T4Qr2Rki
— Murad (@MustStopMurad) June 30, 2024
Market analyst Murad Mahmudov posted a chart on Twitter showing previous local market bottoms in June, followed by a bullish recovery in July, stretching back to 2018. This has led some to speculate that July could bring a market turnaround.
Big Bitcoin Gains in July?
June 2023 saw the market cap tank to just over $1 trillion, but there was a recovery in July, with markets gaining more than 22% by mid-month. While some analysts are predicting similar sideways action this year, others are more bullish.
Analyst ‘Rekt Capital’ posted on Twitter that Bitcoin is on the cusp of challenging the June downtrend for a breakout, and that a daily close above the June downtrend would be needed to kickstart a breakout. The asset is currently forming a higher low and doing all the right things to form a cluster of price action at this range low at $60,600.
BTC prices have gained almost 4% over the weekend, hitting an intraday high of $63,700 during Asian trading on Monday. It also appears to have successfully retested the old major resistance as new support on the quarterly timeframe.
However, the Mt. Gox repayments, estimated at more than $8 billion worth of BTC, are set to begin in early July, which could hamper the asset’s performance.
M2 Money Supply Expansion
Another positive sign for crypto is the expansion of the M2 Money Supply, which has been linked to crypto market cycles. This would be very good for crypto as more money in the system leads to greater liquidity and investment into higher-risk assets.
The M2 Money Supply is a measure of the money supply, which includes cash, checking deposits, and easily convertible capital. When it increases, it suggests that the central bank is printing more money, leading to fiat devaluation concerts, which is another driver of investments in store-of-value assets.
As the crypto market looks to recover from its June losses, investors will be keeping a close eye on these developments and hoping that history will indeed rhyme.
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Source: CryptoPotato
