Cryptocurrency service provider Matrixport has issued analysis warning investors of potential short-term cooling and volatility for Bitcoin and Ethereum throughout the near term. This outlook aligns with historical seasonal patterns frequently observed during the summer months.
Matrixport points to recent spikes in funding rates as a concrete indicator of heightened trader activity and the potential for profit-taking, both significant contributors to expected market turbulence. Historical data underscores this caution, noting that August and September have typically offered flat-to-negative returns for Bitcoin.
The current market pullback appears driven by a notable divergence between positive underlying fundamentals and shifting trader sentiment, according to Matrixport. Despite these near-term headwinds and the possibility of further volatility, the firm maintains a positive long-term outlook for both assets.
Matrixport highlights the ongoing institutional adoption trend and sustained ETF inflows as fundamental pillars supporting confidence in the continued growth potential for Bitcoin and Ethereum beyond the anticipated summer volatility. A rebound is seen as likely following this period according to their analysis.