Coinbase analysts: In August, seasonality is usually not in cryptocurrencies’ favor

The value of the top cryptocurrency fell by more than 15%, with Ethereum posting its most severe decline since 2021. According to Coinmarketcap, the value of BTC is around $54,600. The price of ETH reached $2,410, the second most capitalized cryptocurrency has fallen in price by almost 22% overnight.

Confusion in the global market, provoked by the complex geopolitical situation, panic over the current economic situation and overestimation of the real prospects of the sphere related to artificial intelligence, has collapsed the rates of digital coins. Many investors are selling their risky assets against this background.

At the same time, Coinbase experts called the decline in the crypto market traditional for the last summer month.

“In August, seasonality is usually not in favor of cryptocurrencies,” the trading platform analysts said in a note

According to them, August has historically seen a drop in market activity. At the end of last summer, bitcoin spot trading volume was down nearly 20% and futures trading volume was down 30% compared to June.

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

A similar view was expressed by Bitfinex’s head of derivatives, Jag Kuhner. He sees seasonality as one of the prerequisites for the lack of liquidity in many crypto assets this month.

“We see significant buying walls being built at low ranges for several altcoins. We also expect the bitcoin price to range between $61,000 and $70,000, providing an accumulation zone,” said Kuhner.

What do you think of the expert’s prediction? in favor of cryptocurrencies,” the trading platform’s analysts said in a note.