ANALYSIS: Bitcoin's Decline May Be Linked to Seasonality, Poor Timing for Ether ETF Launch

On July 25, Peterson, founder of asset management firm Cane Island Alternative Advisors, linked the current decline in bitcoin to seasonality, as historically bitcoin tends to underperform this time of year. according to Peterson, “Our research shows that from July 22 to September 22, [the] trend of bitcoin underperforming has been consistent. Bitcoin) tends to underperform consistently from July 22 to September 22.”

Peterson added, “Bitcoin's seasonal pattern emerges later in the year and prepares for the frequent ‘Uptober (October Upside)’ that follows.”

And the July 23rd launch of the Spot Ether ETF could also impact sentiment, “The overall market would be better off if the Spot Ether ETF wasn't launched in 2024. Its launch is bad for both Bitcoin and Ether. Ether has been languishing throughout the cycle, and now it's muddying the waters by launching an ETF at the institutional level.”