Why September is shaping up to be a potentially lousy month for Bitcoin price
Bitcoin closed its last five months of September in losses and could suffer similar pain if history repeats itself.
Market analysis
Bitcoin (BTC) bulls shouldn't be excited about the recovery from the June lows of $17,500 just yet, as BTC heads into its riskiest month in the coming days.
The psychology behind the "September effect"Historical data shows that September is the worst month for Bitcoin between 2013 and 2021, except for 2015 and 2016. Meanwhile, the average Bitcoin price drop during the month is a modest -6% .
Bitcoin monthly returns. Source: CoinGlassInterestingly, Bitcoin's poor performance in previous Septembers coincides with similar declines in the stock market. For example, the average decline in the US benchmark S&P 500 in September is 0.7% over the past 25 years.
S&P 500 performance in August and September since 1998 . Source: BloombergTraditional chart analysts have referred to this yearly decline as the "September effect".
Analysts say investors are exiting market positions after returning from summer vacation in September to lock in gains or even fiscal losses before year-end.
In the meantime, they also note that individual investors are liquidating their assets in September to pay for their children's annual tuition.
Bitcoins
Bitcoin closed its last five months of September in losses and could suffer similar pain if history repeats itself.
Market analysis
Bitcoin (BTC) bulls shouldn't be excited about the recovery from the June lows of $17,500 just yet, as BTC heads into its riskiest month in the coming days.
The psychology behind the "September effect"Historical data shows that September is the worst month for Bitcoin between 2013 and 2021, except for 2015 and 2016. Meanwhile, the average Bitcoin price drop during the month is a modest -6% .
Bitcoin monthly returns. Source: CoinGlassInterestingly, Bitcoin's poor performance in previous Septembers coincides with similar declines in the stock market. For example, the average decline in the US benchmark S&P 500 in September is 0.7% over the past 25 years.
S&P 500 performance in August and September since 1998 . Source: BloombergTraditional chart analysts have referred to this yearly decline as the "September effect".
Analysts say investors are exiting market positions after returning from summer vacation in September to lock in gains or even fiscal losses before year-end.
In the meantime, they also note that individual investors are liquidating their assets in September to pay for their children's annual tuition.
Bitcoins
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