Expected "Summer" Decline in Bitcoin: Are Cryptocurrencies Facing Stagnation?
The trading volume of Bitcoin (BTC) futures market in June decreased by 20% compared to the previous month, indicating that the crypto market may experience stagnation during the summer months.
Seasonal movements in the cryptocurrency market have begun to manifest this year as well. In June, Bitcoin futures trading volumes fell by approximately 20% compared to the previous month, dropping to $1.55 trillion. This figure, significantly below the monthly average of $1.93 trillion for the first five months, has led to comments suggesting that investors are stepping away from the market during the summer period.
Looking at historical data, in June 2024, the Bitcoin futures trading volume also showed a monthly decline of 15.7%. Although it partially recovered in the following months, the monthly average for the June-September period remained about 10% below that of the first five months. A similar situation began in July 2023, with a sharp decline in volumes observed for three months. The trend, which started with a 30% drop in July 2023, continued until September.
Cryptocurrency investors should be cautious
This decline trend that has emerged in parallel with data from the last three years could lead market participants to be more cautious throughout the summer months. It is noted that for investors accustomed to high trading volumes, the risks posed by a low liquidity environment could increase. Experts warn that investors should be prepared for potential price fluctuations that may occur throughout the summer.
Market participants are now eagerly awaiting to see how long this decline will last and whether a recovery will occur after the summer.