While cryptocurrency prices haven’t performed well recently, developments in the industry are injecting positivity after the crash from new all-time highs in May.
El Salvador emerged as the first country to recognise and adopt Bitcoin as legal tender, and the non-fungible token (NFT) section is booming.
Last month was the third most volatile June in the history of the cryptocurrency market, second only to 2011 (278%) and 2019 (100%).
Furthermore, besides being volatile, last June was the third worst performing June, just behind 2018 (-15%) and 2013 (-31%), according to a report from Kraken Intelligence. As such, it’s not surprising that the month had a below-average return of 10% and a median return of 2%.
“When looking at Bitcoin’s historical volatility in July, one will see that the month is, on average, 20 percentage points less volatile than June at 67%. As it relates to historical performance, one will see that Bitcoin returns, on average, 10% in July and has a median reading of 14%. If one were to assume that history will repeat in July, we could expect the cryptocurrency to trend modestly higher month-on-month (MoM) as volatility dwindles and consolidation persists,” said the report from Kraken Intelligence.
Bitcoin’s price was around 45% lower in June than its all-time high of $64,863.10 in April 2021.
June was another month of ups and downs for Bitcoin, with its price ranging mainly between $30,000 and $40,000. The original cryptocurrency even dropped to a five-month low of $28,816.
Kraken’s report expresses optimism about Bitcoin’s ability to hold strong at $30,000. However, nothing can be ruled out, and the price could drop even further in the following months.
The report identifies the Chinese ban on cryptocurrencies and cryptocurrency mining having a temporary effect on the market.
“When looking as far back as 2013, one will find a myriad of headlines out of China that speak to the country’s distaste for crypto assets. While many of these news announcements were followed by Bitcoin’s slumping in the day, week, and month that followed, Bitcoin has tended to continue pressing higher in subsequent months,” says the report.
Bitcoin and cryptocurrencies in general are gaining more traction and acceptance, despite negative comments from sceptics. They can now be used to buy goods, make rapid payments to friends, or play at top new online casinos.