- Bitcoin hit the $51,000 mark earlier this month amid doubt following a historic poor run of form in September.
- The cryptocurrency giant has always had bad Septembers, being in the red zone six out of the last eight.
- The price falling back to $42,700 losing 12% this week has led to experts weighing in on the possibilities of Bitcoin turning the tide this year.
The volatility of cryptocurrencies is one of the notable characteristics of the market. Bitcoin has had its fair share of ups and downs over the years but September has always come with a bad trend wiping billions off the cryptocurrency market. This month, due to recent events, it is still wide open for anything to happen.
Bitcoin’s September Jinx
Bitcoin has had six bad September out of the last eight. Although there is no tangible reason for this bad trend, it has become a psychological issue in the market. While months like September almost always end up bad for Bitcoin, April has a positive aura for the coin. Unlike September, the reason for Bitcoin’s strong April is always linked to the end of the UK and US tax year.
In 2013, Bitcoin fell from an all-time high of $240 to $137 in September. In 2014, Bitcoin also fell from $482 to $377 in September. Some experts feel that the September trend is only noticeable because of the increase in the following months. In 2017, BTC which was trading at $3,682 was trading over $19,000 in December. 2018 witnessed a similar situation with Bitcoin trading at $8,100 in September rising above the $20,000 mark by the end of the year.
September 2021: Where Will The Market Go?
Though analysts regard September as a bad month for Bitcoin, optimism heightened this month as bitcoin rose to $51,000 going above $50,000 once more. Following a string of positive news like El Salvador adopting the cryptocurrency, institutional investors continue to indicate significant interest in the asset. If bitcoin has a positive September, it could spell the start of another strong price rally for the markets.
While things looked good, BTC fell as low as 8% on Monday to trade at $41,353 as regulatory fears intensified. This has left room for traders to doubt the earlier gains bracing up for another possible crash in September. On September 1st, Bitcoin was trading over $47,000 and is currently in the red zone in yet same September.
Why It Matters?
Bitcoin is the largest cryptocurrency by market capitalization accounting for 42.3% of the current market capitalization. The price of Bitcoin has a strong influence on the prices of altcoins. If Bitcoin falls in September, analysts expect altcoins to experience a similar slump in their prices. Furthermore, the performance of bitcoin in September could set the ball rolling till December.