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Bitcoin and Ether, the two leading cryptocurrencies, are predicted to show strong performance in July, according to analysts citing historical trends favoring gains during this month.

Recent price movements have been heavily influenced by technical factors, including the sale of Bitcoin by the United States and German governments and outflows from US spot BTC exchange-traded funds (ETFs), especially following the Mt. Gox announcement about repayments.

However, according to a Monday report from QCP Capital analysts, Bitcoin has historically shown a median return of 9.6% in July and often rebounds after a negative June, as was the case this year with a 9.85% drop in June.

The report also noted that Bitcoin options were positioned for a price increase toward the end of June.

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Analysts from crypto exchange Coinbase also attributed the same trend in the company’s recent report. While citing other market drivers, analysts David Duong and David Han noted that the two top crypto assets historically tend to do better following sell-offs in June, like the one witnessed in June 2024, when BTC was down 8.6% and ETH down 8.7% month to date).

On average, Bitcoin has returned 11% in July over the past five years, per the report, suggesting that BTC has always been up in July following a negative June.

Duong and Han also noted that liquidity could be improved following a 16.7% decline from May to June for BTC and ETH spot and futures trading.

However, the Coinbase analysts noted that token unlocks remain a concern, with a significant amount of value — approximately $58 billion — still expected to come to market this year, which could drive down the prices of cryptocurrencies.

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