September is historically the worst month for BTC since 2013
Bitcoin Price
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September ishistorically the worst month for BTC since 2013
Ifhistorical data is anything to go, Bitcoin’s (BTC)price might dip further this September, which has been the worst-performingmonth on record for the crypto asset since 2013.
Availabledata shows that the flagship digital asset has only seen itsvalue rise in two September between 2013 and 2021, which were in 2015 and 2016.Outside of those two, BTC has recorded an average 6% decline inthe month.
Meanwhile,the September effect is not peculiar to BTC alone. The S&P500 has also had downturns in most of September since 1928.Between 1928 andnow, the S&P 500 averaged a 1.1% decline in September. Experts arguethat the general market decline in September is due to investors’ behavior.
According toElena Dure, most investors usually exit their market positions in September tolock in their gains or even tax losses as the year draws to a close.There isalso a higher rate of asset liquidation as schools resume in September and theneed for cash to pay school costs arises.
Given how BTCprice has mostly mirrored that of S&P performance since thepandemic, it will not be entirely surprising if there is a further decline in BTCprice this month.
Willthis September buck the trend?
While manyinvestors will want Bitcoin’s price to return to previous highs,the possibility of a red September is already manifesting after the asset lostall its gains over the last few months in the final days of August.
After weeksof trading around the $20,000 range and many analysts suggesting that the pricemight have bottomed, BTC’s value has dropped below $20,000. Inthe last 24 hours, the cryptocurrency’s value declined 1.4% and by 2.2% on theseven days metrics. In this year alone, Bitcoin’s price has been down byaround 59%.
The chancesof September 2022 being an outlier month like 2015 and 2016 is also minimal,given that the conditions responsible for declining asset value persist. FederalReserve Chairman Jerome Powell warned that the United States economy would facemore “pain” as the authorities struggle to control the risinginflation.
Thestatement has led to several experts predicting that the FOMC could furtherhike the interest rate in September. Apart from that, the US Labor Departmentrevealed that unemployment rose to 3.7% – the highest since February –anotherindication of the struggles of the US economy.
Bitcoin has dropped significantly this month and may continue to fall. Experts believe that September will be the worst-performing month for Bitcoin since 2013 and that another Federal Reserve hike could cause further losses.