Coinbase experts compare August for the crypto market to the week before a vacation: you work in a slipshod manner, running out of money. It seems that crypto investors have decided they deserve a well-earned break. Indeed, the trading volume in the crypto market is now fizzling out, which led to a drop in token prices.
As noted by analysts David Duong and David Han from Coinbase, August has never been a successful month for cryptocurrencies. In August 2023, Bitcoin spot volumes shrank by 19% compared to June. Futures might have gone on vacation in parallel, as their trading volumes on major exchanges sank by 30%.
Over the past five years, Bitcoin has lost an average of 2.8% of its value in August. It looks like the summer tradition. The decline in liquidity and trading volumes could set the stage for a burst in volatility at the end of the summer.
Other experts are on the same page. For example, Jag Kooner from Bitfinex warned that August 2024 might become a season of liquidity shortages for cryptocurrencies. Apparently, seasons in the crypto market follow their own patterns.
Meanwhile, analysts detected strong buying obstacles for some altcoins, even though they are currently trading at their lows. At the same time, Bitcoin is quietly oscillating between $61,000 and $70,000, generating an accumulation zone.
All in all, this August fits the traditional vocation scenario for the crypto market.
