Bitcoin (BTC) is pacing for a 7% gain in July after the largest cryptocurrency by market capitalization staged a tentative recovery during the month.
In early trading on July 31, Bitcoin was changing hands at $63,800 U.S., putting it on track for a 7% advance in the month.
The price of BTC had fallen as low as $58,000 U.S. at the end of June, which marked its lowest level of the year.
However, while Bitcoin has managed to recover from its 2026 low, the digital asset remains rangebound and stuck trading between $60,000 U.S. and $65,000 U.S.
BTC had managed to rise as high as $66,000 U.S. in mid-July and break above resistance at $65,000 U.S. but was pulled lower amid volatile trading in equity markets.
Despite the July recovery, Bitcoin remains down 27% on the year after starting 2026 at $96,150 U.S. BTC hit an all-time high of $126,000 U.S. last October.
Analysts say Bitcoin needs to rise above resistance at $65,000 U.S. and stay there for a meaningful recovery to take hold.
Issues holding back cryptocurrencies include weak institutional demand, volatile technology stocks, and uncertainty surrounding passage in the U.S. Congress of the Clarity Act legislation.
Data shows that inflows to exchange-traded funds (ETFs) that track the spot price of Bitcoin were at their lowest level on record during July.
And JPMorgan Chase (JPM) has warned that continued wrangling over the Clarity Act in Congress is holding back Bitcoin and other digital assets.
Bitcoin has historically performed best in the year’s second half with the majority of its annual gains coming in the fourth quarter.
