Bitcoin Bounces Back to $64k as July's Positive Seasonality Kicks In

Bitcoin's price has rebounded in July, reaching $64,000 and marking a significant recovery from its recent low of $57,700. This surge is attributed to the positive seasonality of July, which has historically been a reliable month for Bitcoin during bear markets.

According to CryptoQuant's weekly report, Bitcoin's rebound can be linked to recovering demand and the asset's positive seasonality in July. The report highlights that past data shows July's seasonal tailwind is strongest during bear markets, with BTC experiencing 20% and 17% surges in previous bear cycles in 2018 and 2022, respectively.

The current rebound has seen Bitcoin rise by 11% from its lows, trading above the crucial $64,000 support level. The positive momentum witnessed in July often occurs regardless of the broader market trend, making it more likely that further upside is possible, thanks to this seasonal effect.

Total bitcoin demand has also recovered, climbing back towards neutral after a sharp contraction since 2022. Analysts note that speculative futures demand is turning slightly positive while spot apparent demand contracts at its slowest pace since mid-May.