- September: Bitcoins Worst Month
- Bitcoins history reveals a negative trend of September as the month has reported negative return on investment for the last 13 years with the exception of 4 positive returns.
- The figures also show that average return ratio for September is negative, that is -5.36%.
- The altcoins tend to stagnate after summer and subsequently, the market experiences a selling pressure and poor performance by Bitcoin.
- Important Events Affecting Bitcoin
- Analyzing previous trends it has been seen that Bitcoin was not in good position in the month of September and this is why it is predicted that Bitcoin can have red or green September.
September: Bitcoins Worst Month
Analyzing historical returns of Bitcoin and observing the BTC price movements in past years, September has posed as significant downside risk, and on average, the negative performance has been consistent. For the last 13 years, the Bitcoin has only reported gains in September only four times. This unfortunate trend has made September to be regarded as the most destructive month to investors in the Bitcoin. The average return ratio indicated a negative of 5.36%, the question on everyone’s mind is: So, would September 2024 be as red as it was expected or it will act differently and deviate from previous tendencies?
Why September Is Historically Bad for Bitcoin
There are several factors that may have contributed to Septembers much talked about performance. As it is known, the crypto market like any other traditional markets, sometimes slows down as traders and investors take their time to reposition themselves after summer. This period of confusion results in a increased selling pressure especially when the trading volumes are low thus Bitcoin underperformance.
Important Events That Could Happen in September Affecting Bitcon
Nevertheless, there are some crucial events expected to happen during September, which may affect the Bitcoin’s price. These events might well serve to diminish this phenomenon – or perhaps widen it.
Release of Non-Farm Payroll data on the September 6th
Non-farm payroll data are one of the important releases that gives an insight into the state of the U.S economy. Higher than forecasted growth of the first economic report might contribute to the faith in the traditional markets and lead to the capital moving out from Bitcoin.
U.S. Inflation Rate Release- CPI (September 11th)
The Consumer Price Index (CPI) data is also useful with regards to economic indicators. If inflation is more than investors’ forecast then there is a good chance that there will be a shift to risk-off mode, which will spell further trouble for BTC and other crypto assets.
FED FOMC Meeting (September 18th)
Apparently, the FOMC meeting will be quite influential for Bitcoin and its fluctuations. There is a possibility, the rate cut will drive more demand for Bitcoin as an inflation hedge but in case the Fed continues to tighten or hikes the rate more pressure on the Bitcoin’s downside is possible.
September 18, The Trump verdict will be revealed
September 18th is another potential cause of market fluctuations because of the Trump verdict. Hardly any political event can be predicted to have a favourable outcome, therefore political instabilities are likely to cause fluctuations in the markets.
CZ’s release from jail, (September 29th)
The coming out from jail of Binance CEO Changpeng Zhao (CZ) on September 29th is a highly expected event within the cryptocurrencies space. For one of the world’s largest cryptocurrency trading platforms called Binance, CZ is crucial. Its release can give some improvement to Bitcoin’s September misfortunes as it lifts the market confidence of the subject.
Will September 2024 be different?
However, looking at past performance, it is clear that Bitcoin has not performed well in September in the past, which means that the events that are in the calendar could either reverse the trend or continue to drag the crypto assets down. The market is anxiously waiting to find out whether these factors will translate into a green September for Bitcoin or whether we are going to witness Red September like we did in the previous year.
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