August is typically marked by a drop in crypto market activity and a drop in the value of major altcoins, Coinbase analysts say.
“Seasonality is typically not favorable for crypto in August,” Coinbase analysts David Duong and David Han noted.
August typically sees lower market activity. For example, Bitcoin spot trading volumes fell 19% in August 2023 compared to June of the same year. They said Bitcoin futures trading volumes also fell 30% over the same period on global centralized exchanges.
“Bitcoin has averaged a 2.8% monthly decline over the past five years, and lower liquidity and trading volume could lead to increased volatility in August.”
Coinbase analysts say the market could see similar dismal behavior this year.
Bitfinex derivatives trading director Jag Kooner echoed similar sentiments, saying August could see a lack of liquidity in many assets.
