Historical data can play an important role in the cryptocurrency market. If we look at historical data, September was the month we saw the worst performances for Bitcoin price since 2013. Therefore, some expect the price to experience a deeper decline this September. Here are the details…
September has always been problematic for Bitcoin
Available data shows that the largest cryptocurrency saw its September rise in value only in 2015 and 2016. Out of these two, BTC is down an average of 6 percent in September. Meanwhile, the September effect is not unique to BTC. The S&P 500 has also been down for most of September since 1928. Between 1928 and 2022, the S&P 500 averaged 1.1 percent in September. Experts argue that the overall market decline in September was due to the behavior of investors.
According to Elena Dure, most investors exit market positions, usually in September, to stabilize their gains and even tax losses as the year ends. The rate of asset liquidation is also observed to be high, as schools restart in September and cash is needed to pay school fees. cryptocoin.com As we have also reported, BTC has been closely following the stock market movements since the pandemic. Therefore, further declines in BTC this month will not come as a surprise to many.
Will Bitcoin price break the trend this September?
Many investors want Bitcoin price to return to previous highs. However, the possibility of a red September is emerging after the asset lost all its gains from the last few months in the last days of August. After trading around $20,000 for weeks, BTC eventually fell below $20,000. However, many analysts suggested that the price may have bottomed out at $20,000. BTC, which has lost 1.4 percent in the last 24 hours, has dropped 2.2 percent in the last 7 days. This year alone, Bitcoin’s price has dropped by nearly 59 percent.
But what if the conditions responsible for the asset’s depreciation persist? In this case, September 2022 is considered unlikely to be outliers like 2015 and 2016. Federal Reserve Chairman Jerome Powell has warned that the US economy will face more “pain” as officials struggle to contain rising inflation. The announcement led several experts to predict that the FOMC could raise the rate further in September. Apart from that, the US Department of Labor announced that unemployment rose to 3.7%, the highest level since February. He also explained that it is another indication of the struggles of the US economy.
