Greg Cipolaro, research manager at Stone Ridge Asset Management, said that for traditional market investors, August is a quiet month, and cryptocurrencies are no exception. The situation may continue until August.
But despite this, investors remain optimistic as Bitcoinis still up about 77% from the start of the year.
There are various factors that could work in BTC’s favor, for example: XRP’s decision could set a precedent for how cryptocurrencies are regulated in the United States.
Congress is advancing legislation that could provide greater clarity and support to the crypto industry. BTC ETF applications could increase demand and liquidity for BTC.
The BTC halving will happen in the spring of 2024, which may reduce the supply of Bitcoin and increase the rarity of the coin.