Major American cryptocurrency company Kraken has released a report that expects Bitcoin (BTC) to increase by between 50% and 200% in the coming months.
The report notes that on July 24, Bitcoin saw its lowest level of volatility in 21 months at just 23%, and that the lowest historical BTC volatility level (between 15% and 30%) was followed by an average increase of 140%. .
Since August is usually the third most volatile month for Bitcoin price fluctuations, Kraken expects the upward momentum generated by Bitcoin in late July to continue for a few more months.
Bitcoin’s rise in late July defies history
Kraken confirmed that the recent rally in Bitcoin resulted in the second strongest July performance in BTC price since 2011, noting that July was usually the third weakest calendar month for Bitcoin.
According to Kraken, Bitcoin’s 14.5% jump between July 27 and 31 increased the month’s overall performance by 24%, putting the market in sustained momentum.
Prior to this move, July released what the report called “suppressed” by weak volatility. Ten of the twelve previous cases of Bitcoin went into the pent-up pocket, followed by gains of more than 196%.
Kraken estimates that 44% of the total trading volume in July was in the last seven days of the month.
BTC is tied to gold
The report also shows that Bitcoin’s 30-day relationship with gold rose to a year-high of 0.93 on July 31.
The rally comes after the monthly correlation fell to a 10-month low of -0.66 on July 2nd, contradicting expectations that gold and Bitcoin will be popular “safe havens” during COVID-19 “apply and move step by step will pandemic and recession.