Buyers have a number of causes to be optimistic towards bitcoin even because it enters one of many sleepiest trading months of the yr. The flagship cryptocurrency ended July — often a sturdy month — up 5% at $65,596.41, in keeping with Coin Metrics. In June, bitcoin fell 8%. It has completed seven of the previous 11 Augusts within the pink, producing a median 2.69% return for the month, in keeping with CoinGlass, largely on account of a greater than 65% acquire in August 2017. “We predicted that the elections can be a main theme and driving issue within the second half of the yr and that simply got here a lot before we anticipated,” mentioned David Duong, head of institutional analysis at Coinbase. “It is very doubtless that is going to proceed enjoying a half right here” within the month forward, Duong mentioned. BTC.CM= 1M mountain Bitcoin (BTC) over the previous month A possible Trump/Vance administration favoring a weaker greenback, in addition to Trump’s promised help of bitcoin possession and improvement within the U.S., may sway costs, in keeping with Zach Pandl, Grayscale Investments’ head of analysis. “July was a momentous month for crypto with the launch of U.S. spot Ethereum ETFs and help for bitcoin from the Republican get together — producing a broader public discourse about U.S. crypto coverage alternatives,” Pandl mentioned. “The query for August will likely be whether or not enhancing business fundamentals translate into increased valuations.” The bitcoin group was stirred by former President Donald Trump’s pro-crypto guarantees made to lovers on the Bitcoin 2024 convention in Nashville final week, and a proposal from Sen. Cynthia Lummis, R-Wyo., to create a U.S. bitcoin reserve. Alex Miller, CEO of Hiro, a startup that makes instruments for builders to construct apps on the Stacks blockchain, expects extra tepid value motion in August. Macroeconomic elements, together with “disruption within the tech inventory house,” may make trading uneven for the remainder of the third quarter ending Sept. 30, Duong at Coinbase mentioned. Moreover, there may be nonetheless a provide overhang coming from Mt. Gox distributions and “locked up” altcoins. “Bitcoin goes to commerce within a vary, however the ground is far increased now than it was” on account of demand from exchange-traded funds, he mentioned. “Each the ground and ceiling are capped for bitcoin proper now. It is onerous to say how sturdy these strikes are going to be over the course of the month, however I do know that I do not count on to see a break above all-time highs for bitcoin within the subsequent two months.” Bitcoin has traded in a vary between $55,000 and $70,000 since March, when it notched an all-time high above $73,000. It has struggled to carry above that ceiling since. Pandl at Grayscale is upbeat on the prospect of bitcoin reaching one other all-time high someday this yr, and ether retesting $4,000. “Fairness markets have wobbled however, to date, bitcoin has carried out properly, trading extra like a hedge towards greenback weak spot,” Pandl mentioned. “Whether or not [it] can stay resilient towards a larger fairness drawdown will likely be an vital query as we head into August 2024.”