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Bitcoin’s Red Month; Why September Still Shapes the Crypto Cycle
September has a notorious reputation in the world of cryptocurrency, as traders and investors anxiously await the outcome of the U.S. Federal Reserve’s policy moves while the market tends to be highly volatile. Since 2013, Bitcoin (BTC) has historically underperformed during this month, with losses in eight out of the last eleven years. This phenomenon is often attributed to retail investors typically taking profits after summer rallies or using crypto to cover their fall expenses, such as tuition fees and tax planning.
Moreover, September’s red candles may also be a self-fulfilling prophecy, as traders become more defensive due to expectations, further dragging down the market. It’s essential to note that while most of these pullbacks have been modest, the narrative remains the same: Bitcoin’s red month might still influence the crypto cycle.
Over the past few years, this recurring theme has persisted, resulting in an unsettling pattern. Despite this ominous history, there are factors to consider when approaching September. In light of institutional buyers waiting in the wings and market liquidity remaining thin due to summer sell-offs, the possibility for a rebound or even a massive rally exists.
Source: cryptoslate.com
