Summary
- Santiment predicts a relief rally to begin this month after small trader capitulation.
- Historically, Bitcoin tends towards a strong performance in July as shown by the past 11 years.
Bitcoin is currently trading above $62,000 amidst multiple optimistic predictions for the month.
According to the latest reports from Santiment regarding July’s outlook, we have major reasons to be optimistic after small trader capitulation.
The crowd’s negativity and average trader losses could mean that a relief rally may be just beginning.
In their notes shared on X, the crypto intelligence platform Santiment revealed a short June recap, showing that from June 7 to 21st, Bitcoin’s market value declined about 17%.
Bitcoin on-chain analyst Willy Woo explained that during the past months, we saw a rare miner capitulation event that was longer compared to the previous ones.
He predicted that we would see a price recovery for BTC only after the weak miners exit the market and the “purge” is over.
Bitcoin Could See July Rebound
According to official data from Coinglass which tracks the monthly returns of the coin beginning in 2013, Bitcoin’s price historically averaged a slump of 0.35% in June.
The data revealed that during the previous years, whenever the month of June ended in a downtrend, the following month saw a strong comeback, with BTC gaining an average of 7.42%.
Despite seeing increased volatility during the previous month, Bitcoin remains surrounded by optimism.
BTC, a Safe Haven Superior to Gold
The former CEO of BitMEX, Arthur Hayes just published an article in which he pointed out more positive views on Bitcoin.
He addressed the historical economic cycles which are divided into local cycles of inflation and global cycles.
According to him, now we are in a local cycle, and in this current environment, BTC is seen as a safe haven superior to gold because it’s independent of national control.
Hayes said that he’s confident BTC will be able to “regain its mojo” as we are now in the midst of a new mega-local, nation-state-first, inflationary cycle.
He believes that fiscal and monetary conditions are loose and will continue to remain like this, and holding BTC and crypto is the “best way to preserve wealth.”
