"Bitcoin, Seasonal Weakness Expected in August-September... Surge in US Treasury Issuance Could Fuel Long-term Gains"

Bitcoin (BTC) is continuing its sideways movement in the absence of major drivers, and analysis suggests that August and September are typically periods of seasonal weakness. However, some predict that over the longer term, macroeconomic trends such as US fiscal uncertainty could act as growth drivers.

On the 1st, crypto asset (cryptocurrency) management firm Matrixport stated in a research report, "Bitcoin typically does not move without a clear catalyst," adding, "Price increases are usually connected to meaningful capital flows. The larger macro factor of US fiscal instability should be the real reason for an eventual rise."

According to the report, July is usually a period when Bitcoin tends to show strength. Conversely, August and September are seasonally weak periods, with the market reportedly entering a wait-and-see mode amid a lack of major events.

The report continued, "Ethereum's funding rate hovers around 15%, which is still limited, and there are no signs of market overheating," and explained, "With the next Federal Open Market Committee (FOMC) meeting scheduled for September 17, strong momentum in the short term is unlikely."

However, the report added, "With President Trump expanding the debt ceiling by $5 trillion and a sharp increase in US Treasury issuance, demand for gold and Bitcoin could continue."

It further analyzed, "The market tends to react to headline news, but the real driving force behind price movements comes from liquidity and capital flows," adding, "Bitcoin's next 'breakout' is likely to emerge not from surface-level news but from these liquidity flows."