Why selling cryptocurrency in August could be a costly mistake — experts' opinion

In August, the cryptocurrency market capitalization did not reach new highs like it did in July. The rally stalled as inactive whales became active, and traders started to take profits.

The question arises: should investors sell in August and wait for new lows? Recent analysis from experts helps to better understand the situation.
Why selling in August might be a mistake

After reaching a peak market capitalization of $4 trillion in July, the market corrected by 6.7% and is now at $3.67 trillion. Although this is a minor correction, the events of August raise concerns. Among them are whale activity, slowing inflows into ETFs, tariff pressure, and the rise of the DXY index (US Dollar Index). These factors intensify fears of a stronger correction in August.

However, for Bitcoin, the latest report from Swissblock views the recent price drop as a positive phase. The pullback is seen as a necessary cooling-off after the previous rise. The report focuses on two key indicators: net realized profit/loss (PnL) and 7-day SOPR (profit ratio from spent outputs). Both indicators are declining, but do not cause concern.

"This correction is a healthy cooling-off, not a sign of weakness. The pure realized PnL is sharply falling, but sales remain low. SOPR is decreasing but not collapsing. Investors are taking profits, not panicking — they want to sell at a higher price. This is a constructive reboot," noted Swissblock.
Although the report does not specify an exact price for Bitcoin's recovery, some analysts believe that BTC may fall to $95,000 before it starts to rise.

The market capitalization of altcoins (TOTAL3) has decreased by more than 10%, falling from $1.1 trillion in July to $963 billion in August. However, the Altcoin Vector report states that altcoins remain promising.
The report uses a quadrant chart that divides the altcoin cycle into four phases. Since July, the chart has been moving counterclockwise and is now heading towards the "Breakout Zone."

"Smart capital comes here before the crowd notices it. Momentum shifts, structure stabilizes. This is not a breakthrough: preliminary positioning begins now," reports Altcoin Vector.
Crypto analyst VirtualBacon explained why selling in August could be a costly mistake.
He noted that while some events may cause concern, there is no reason to panic because:

The announcement about the tariffs on August 7 may be just short-term noise, similar to past events.
Weak employment data could increase the chances of the Fed lowering interest rates.
The U.S. Department of the Treasury threatens to confiscate $500 billion, which will cause short-term volatility but will not lead to a liquidity crisis.
Moreover, market sentiment has cooled. In July, it was in the "Greed" zone, but now it has shifted to the "neutral" zone. Since February, the market has not entered a state of "extreme greed," which is usually considered the ideal time to make selling decisions.