After the devastating Q2 in which bitcoin registered three consecutive months with massive declines, the asset finally saw some increases in July, becoming its best month in 2022 to date.
This happened when BTC crossed the $20,000 line and ended the month with a double digit increase.
Bitcoin Soared by 17% in July
2022 has been a challenging year for many, with the galloping inflation hurting economies, and the Russia-Ukraine war only exacerbated the mass pain. With the US and many other global superpowers trying to fight inflation by increasing interest rates, the financial markets took quite a few hits.
Being a risky asset, bitcoin and alternative coins were badly hit. Q2 ended as BTC’s worst trading quarter in a decade with a massive drop of over 55%. June alone was the property’s most violent month in ten years. In this, BTC fell from a multi-year low of $30,000 to $17,500 and closed with a 37% loss even though it has reclaimed some ground by the end.
As such, all eyes were on July, hoping to reverse the trend. And it didn’t disappoint. It was quite a volatile month, especially when the US record-setting CPI numbers came out, the Fed increased the interest rates (again), and President Biden refused to admit that the country had entered into a recession.
However, unlike the previous examples, this time Bitcoin reacted with a more positive price performance. It started gaining price and touched a 6-week high above $24,500. Despite a slight retracement, it still ended at $23,300 – 16.8% above the June close. Hence, July turned out to be the best performing month for BTC since last October.
What Could Be Next?
Coinglass’ monthly data shows that August is typically a bearish month with a few notable exceptions. Back in August 2013, BTC soared by 30%, while in 2017, it skyrocketed by 65%.
September has historically been even more bearish, with only two out of nine tracked by CoinGlass in the green.
However, October and November sit on the opposite corner, which is why several crypto proponents and analysts predicted that the end of this year could be significantly more bullish, and BTC could finally reverse its months-long bearish trend.
