Soon Bitcoin Begins Its Historically Best Month

0

Last Updated on 10 June 2022 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / [email protected]
View all posts

Although Bitcoin’s price seems correlated to tech stocks and the Nasdaq index in 2022, and the ECB’s interest rate decision could influence it as well, it is always a good idea to check on historical returns for the world’s biggest crypto coin to see what we can expect.

As such, we note that May proved to be a very disappointing month, just as it was in 2021 already, when it saw a fall of 35%. This time round, Bitcoin fell 16%, while historically May should leave investors with a 10% profit. However, disappoint tech results (shock market falls for Netflix, Meta and even Tesla) and the Terra Luna collapse brought down Bitcoin and the crypto market

Advertentie.

Healthy return

The current month of June is normally the great equalizer. Except for June 2011, which saw a 68% growth return, this month is normally only a 2% rise, which in stock market terms is coined ‘unch’, meaning unchanged.

Bitcoin investors have reason to be cheerful after the cryptocurrency has snapped the longest weekly downtrend in its history.

Nigel Green, CEO of financial advisory group deVere, explained to Forbes this week.

Just as we did, Nigel also pointed to Bitcoin’s correlation to the stock market as one reason for temporary bullishness.

On top of this, July is just around the corner, and if we take the median result of the past 11 years, we see that the seventh month of the year provides for a very healthy 18% growth on average. In July of 2020 Bitcoin rose 24%, in 2021 it delivered a very healthy 18% return.

That would be good then, because at this moment, the Bitcoin fear and greed index still points to terrible bearishness, aka extreme fear. It will be interesting to see whether Bitcoin can fall back in line with historical trends.