"Bitcoin Faces Potential August Downturn... Slowing Capital Inflows"

Doohyun Hwang

Summary

10x Research reported that August has traditionally been the most bearish month for the Bitcoin (BTC) market.
It was noted that capital inflows into the Bitcoin network have recently slowed.
A sharp price surge may not materialize, and the $112,000 and $106,000–$110,000 ranges are cited as major support levels.

A warning has been issued that Bitcoin (BTC) could repeat its historical August weakness.

According to CoinDesk on the 31st (local time), 10x Research stated in a recent report, "August has been the worst-performing month over the past 10 years," and predicted, "the market could enter a correction phase." According to the report, in the past 10 years, Bitcoin has only risen in August in 3 years, while in most other years, it recorded declines of 5–20%.

10x Research explained, "The network inflows that have driven Bitcoin's upward trend this year are slowing," adding that "cumulative capital inflows into the Bitcoin network have surpassed $206 billion this year and a total of $1 trillion, but the recent 30-day average inflow has declined from $62.4 billion to $59.3 billion."

They continued, "Despite significant corporate capital inflows, price reaction remains surprisingly muted. Even if the capital inflows persist, the sharp rally many are hoping for might not occur," adding, "There is also a possibility that Bitcoin could drop below its current price level of $116,000. The $112,000 and $106,000–$110,000 ranges are key support levels."

BTC