Research spanning two centuries contradicts the belief in an August stock-market slump. Historical data indicates that stocks generally rise during August, countering the prevalent narrative on Wall Street.
US markets, including the S&P 500, have shown that August typically isn't marked by heightened volatility. Instead, average volatility remains below other months, suggesting stable conditions rather than market turmoil.
For Bitcoin and Ethereum, this challenges expectations of August being a turbulent month. Traders might reconsider strategies based on false volatility assumptions, keeping an eye on BTC at $30,000 and ETH at $2,000.
This stock stability could hint at a steady risk appetite, maintaining interest in risk assets like Bitcoin. However, the debunking of myths might also attract attention to DeFi and RWAs, given the perceived stability.
Traders should watch upcoming Fed meetings and inflation reports closely, as they might shift market conditions. Corporate earnings could also influence perceptions and market strategies in the next quarter.
The bull case suggests crypto benefits from stable traditional markets, encouraging risk-on sentiment. However, a bear scenario could arise if unexpected macro events introduce genuine volatility, impacting crypto positions negatively.