Without relying on historical data, the price of Bitcoin (BTC) could fall further in September this year, making it the worst month on record for crypto assets since 2013.
According to available data, the value of this flagship digital asset only increased twice between 2013 and 2021, in September 2015 and 2016. Aside from these two occasions, BTC registered an average 6% monthly decline.
The September effect, on the other hand, is not unique to BTC alone. The S&P 500 has also fallen for most of September since his 1928.
From 1928 to the present, the S&P 500 has fallen an average of 1.1% in September.Expert quarrel It said the general market decline in September was due to investor behavior.
According to Elena Dürre, most investors The usual As the year draws to a close, exit market positions in September to lock in profits or lock in tax losses.
There is also a high liquidity rate of assets as schools reopen in September and there is a need for cash to pay for school fees.
Given that the price of BTC has largely mirrored the performance of the S&P since the pandemic, it wouldn’t be entirely surprising if the price of BTC fell further this month.
Will this September buck the trend?
Many investors hope Bitcoin’s price will return to its previous highs, but after the asset lost all its gains over the past few months at the end of August, the chances of a red September It has already appeared.
After weeks of trading around $20,000 and many analysts suggesting the price may have bottomed out, BTC has fallen below $20,000. Over the past 24 hours, the cryptocurrency’s value has fallen 1.4%, and the 7-day indicator has fallen 2.2%.
This year alone, the price of Bitcoin has fallen by about 59%.
The likelihood that September 2022 will be an outlier month like 2015 or 2016 is also minimal given the continued conditions that contribute to the decline in asset values.
Federal Reserve Chairman Jerome Powell has warned that the US economy will face more “pain” as officials struggle to contain rising inflation.
This statement has led to several experts Predict That the FOMC could raise interest rates further in September.
Separately, the US Department of Labor revealed that the unemployment rate has risen to 3.7%. This is his highest since February and another sign that the US economy is struggling.
