Bitcoin (BTC) markets enjoyed record strengths at the end of July. Based on that, Kraken, a major US-based crypto exchange, has now projected that BTC may explode to record gains of up to 200% in the coming weeks and months. The report released by the exchange puts the bitcoin rally between 50% and 200%.
That same report notes that BTC recorded a 21-month low for volatility on July 24 of approximately 23%. It explained that bitcoin’s 12 historic volatility lows of 15% to 30% have normally ushered in huge rallies of 140% on average.
With August being the third-most volatile month for bitcoin price fluctuations historically; Kraken predicts that upward momentum produced by Bitcoin at the end of last month will continue for many months to come.
Late-July Bitcoin Rally Defies The Norm
Kraken insisted that BTC’s recent rally resulted in the second-strongest July for the crypto’s price performance since 2011. The exchange also noted that July was normally the third-weakest calendar month for Bitcoin.
The flagship token’s 14.5% jump that happened between July 27 and July 31 drove the month’s cumulative performance to a 24% gain. That surge has positioned the market for continuous momentum according to the Kraken report.
Before that move, July had produced a “suppressed pocket” of weak volatility. 10 of the 12 past instances of Bitcoin heading into a suppressed pocket have paved the way for gains that exceed 196%. 44% of July’s total trade volume was recorded in the last seven days of the month according to Kraken.
Bitcoin Correlates With Gold
The Kraken report also notes that BTC’s rolling 30-day correlation with gold jumped to a one-year high of about 0.93 on July 31. That spike comes after the monthly correlation fell to a 10-month low of -0.66 on July 2. It contradicted projections that Bitcoin and gold would emerge as popular haven assets; and move in-step all through the coronavirus pandemic and recession.