As June unfolds, Bitcoin, altcoins, and traditional financial markets enter the usual summer trading lull.
Historically, Q3 has seen significantly lower trading volumes, with Bitcoin trading volumes dropping over 40% compared to the highest-volume quarter.
The Bitcoin Summer Lull Will End in a Bullish Breakout
According to blockchain research firm Kaiko, in Q3 2023, BTC-USD volumes hit a multi-year low of $44 billion despite the anticipation surrounding BlackRock’s spot Bitcoin exchange-traded fund (ETF) filing. Tightening regulations and the recent fallout from US banking turmoil contributed to this trend.
Interestingly, the launch of 11 spot Bitcoin ETFs in the US has improved price discovery and liquidity, offering hope that this summer might not see such drastic lows.
“Nevertheless, the increasing interconnectedness between cryptocurrency and traditional financial markets could pose risks and potentially exacerbate the trend of low-volume trading,” researchers at Kaiko wrote.
Likewise, analyst and derivatives trader Tone Vays predicts consolidation for another month or two before a significant upward movement. He remains optimistic about Bitcoin but maintains that a range-bound period is likely, with the potential for a breakout towards the next Fibonacci extension of $102,000.
“The monthly chart is on an MRI sell. The MRI top is in consolidation, so there is a high probability we will set up for a second consecutive weekly MRI top and then hopefully a third as well,” Vays explained.
Bill Miller, CIO of Miller Value Partners, also remains bullish on Bitcoin despite potential short-term consolidation. He emphasized Bitcoin’s role as a disruptive technology in the financial sector.
He pointed out that traditional monetary systems are prone to human error and political influence, leading to currency debasement. In contrast, Bitcoin offers a transparent, decentralized ledger that enables secure and permissionless transfer of property rights.
“Despite Bitcoin recently hitting new highs against every fiat currency, I believe Bitcoin today is still significantly undervalued and that the world is likely in the early stages of a secular shift around how humans think about capital and its governance,” Miller said.
Miller further argued that Bitcoin’s intrinsic value is far greater than its current market capitalization of $1.5 trillion.
Read more: Bitcoin (BTC) Price Prediction 2024 / 2025 / 2030
The summer lull may present a period of consolidation for Bitcoin, but the underlying fundamentals and bullish sentiments from experts like Vays and Miller indicate a bright future.
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