Kraken Intelligence takes a look at Bitcoin's price potential this August, as the flagship cryptocurrency exits the quarter. According to the crypto exchange's new report, Bitcoin performed quite well in July, rewarding its holders with an 18 percent return. This is above the historical average return for the month of 11 percent.

Kraken report: How will Bitcoin perform?

Kraken says that August is not generally a high-performing month for Bitcoin. “August is the second-worst month on record, with average monthly returns of 2 percent and -7%, respectively. Indeed, since 2011, August has performed only three times better than July.”

Kraken also looks at BTC's historic third-quarter numbers, noting that Bitcoin's third-quarter performance has been all over the map in the past years. In this case, Kraken says, historical priority may not be a reliable indicator. The crypto exchange says that Bitcoin's volatility has dropped a bit lately and may decline towards the rest of the month.

"Bitcoin's 30-day volatility (76.5%) is fast approaching its 345-day volatility (73.1%) and volatility remains on an uptrend, with volatility a little higher in August before recovering over the following week(s), month(s). can be expected to fall. In summary, history shows that volatility is on the horizon."

Whale activity was also examined in the report.

The crypto exchange also includes whale activity in its report. Kraken says the “total” of whales holding 1,000 BTC or more started accumulating BTC again in July after dropping 30,000 BTC in June. Kraken reported that the amount of BTC in whale wallets increased sharply after Bitcoin jumped from $30,000 on July 20.