Bitcoin Traders Position for ‘Bullish July’ as BTC ETFs Record $124M Inflows

Since April, Bitcoin’s price has fluctuated between the ranges of $59,000 and $74,000. Factors contributing to this volatility include substantial sales transactions, impending selling pressure, withdrawals from exchange-traded funds (ETFs), and a peak in pessimism among individual investors.

July, which historically has been a bullish month, might bring about a shift in this trend soon. The opening day of the month brought in approximately $130 million into U.S.-listed ETFs – the most significant inflow since early June, following substantial outflows totaling over $900 million during the month prior.

In their Telegram message on Monday, the financial firm QCP Capital from Singapore highlighted that Bitcoin typically delivers a median return of 9.6% during the month of July. Moreover, it has a tendency to rebound significantly following a negative June performance (-9.85%).

The trading desk at Options noted an increase in positions aiming for price growth on Friday before the end of the month. This could be linked to the upcoming launch of the Ethereum spot Exchange-Traded Fund (ETF), which may lead to a bullish trend in July, according to QCP’s assessment.

During the past ten years, Bitcoin has experienced an annualized growth rate of over 11% in the month of July. Seven out of every ten Julys have resulted in positive returns according to the data.

In a 2023 report, Matrixport, a crypto investment firm, mentioned that the returns for the months of July from the years 2019 to 2022 approximated approximately 27%, 20%, and 24% respectively.

Assets exhibit consistent and recurring patterns of change throughout the year, which are referred to as seasonality. Although these fluctuations may appear unpredictable, they can be attributed to various factors such as tax-related profit-taking in the spring or the bullish market sentiment during December’s “Santa Claus” rally.