Crypto Finance Firm Matrixport Says Bitcoin May Be Entering a Summer Seasonal Correction Phase! Here Are the Details

Crypto finance firm Matrixport stated in its latest report dated July 25 that Bitcoin may have entered a seasonal correction phase typical of the summer months.

Matrixport: Bitcoin Entering a Seasonal Correction, Is This a Buying Opportunity?

According to the report, while Bitcoin’s upside potential emerged after breaking above the key $109,410 level on July 4, technical signals in recent days suggest an increased risk of short-term declines.

In its latest analysis, Matrixport pointed out that the corporate buying season has ended and the market is slowly turning towards profit realization.

The “Genius” Bill and the Impact of US Policies

Matrixport also evaluated the US government’s “GENIUS” bill, which could open a new page in digital asset regulations.

This bill was described as a comprehensive economic strategy aimed at promoting a digital dollar, supporting Treasury bonds, and paving the way for a blockchain-based financial system. This development was interpreted as a signal that the US is preparing to adopt a more constructive stance in the crypto space.

The report noted that investors are becoming more cautious as the second half of the summer approaches, and position reductions may accelerate. The report predicts that some large investors, in particular, may resort to profit-taking, which could put pressure on the market and lead to a gradual decline in Bitcoin’s price throughout the summer.

According to Matrixport, Bitcoin’s struggle to break above $122,000 constitutes technical resistance. The institution noted that both technical indicators and institutional inflows are weakening, leaving a strong element lacking to support upward momentum in the short term.

Conclusion: According to Matrixport’s assessment, the market is currently in a correction phase. However, this could also be seen as a buying opportunity for long-term investors. If institutional inflows pick up again, Bitcoin could gain new upward momentum.

*This is not investment advice.