September has not been a good month for Bitcoin as far as gains are concerned
Especially for all the four years from 2017 to 2020
The next FOMC meeting from September 21-22 remains a crucial event worth looking out for
Bitcoin markets had to endure hell in September from 2017-2020. That’s right. Historically BTC has always registered losses in September. In September 2017, BTC experienced a drop from the $4,700 price level to $3,200. It was $7500 to $6000 in September 2018, near $10,200 to $7,500 in September 2019, and from $11,500 to $10,000 during September 2020.
Twitter-based crypto commentator, Fomocap noted in a tweet Thursday, July 1st, “Wall Street likes the color red in September. The First month after vacation.”, he said in a tweet and posted four consecutive charts of Bitcoin trimming gains in all September(s) from 2017 to 2020.
Fomocap mentioned US stocks to have undergone “bearish Septembers” as well. But the same is only true for the years 2018, 2019, and 2020, when the benchmark S&P 500 index did lose a few points and go pitter-patter.
S&P 500 Daily Chart Shows September Blues For Stocks, Source: SPX on TradingView.com
Interestingly during the discussed timeline (2017-2020), the US dollar has always posted gains, except in 2018. The US Dollar Index or DXY that measures the greenback’s strength against major fiat currencies has always been on an uptrend during September 2017, 2019, 2020.
Bullish sentiment for Bitcoin markets took a breather during September 2017-2020. And while that happened, investors rushed to seek safe havens in cash and cash-based asset markets. So what’s the explanation behind this? BTC and USD, for the most significant part of their trading history, have behaved as negatively correlated assets.
Crypto investors primarily like to think of the digital asset class as independent from other traditional asset markets. But unfortunately, that’s not the truth. Bitcoin trades in fiat currency pairs across the world, with most of the volume coming from greenbacks. Therefore, USD market trends affect BTC prices. It was visible from the shifting stance of investors as they quickly sold their Bitcoin positions to enter new ones in the dollar markets, post the Fed’s announcement of interest rate hikes in 2023.
The Federal Open Reserve Committee’s (FOMC) meeting this month was to give investors clarity on how it wants to deal with the scenario of surging inflation. In September, it will convene to further discuss its monetary policy tightening moves and tapering in bond purchases.
Bitcoin markets could again face setbacks if any developments favor the rise of the US dollar’s strength. Historically, the third quarter, in general, has not ended well for the top cryptocurrency. Data shows BTC reporting adverse movements in Q3 in all years except 2017, 2018, and 2020.
If the Fed sharpens its hawkish tone, then Bitcoin could be in for a rough ride, and a potential bull market will only like to “be awakened” after September. But bulls are an optimistic lot and will remain so. One such BTC bull is Konstantin Anissimov, Executive Director of the cryptocurrency exchange CEX.IO. According to him, this is just the lull before another liftoff. He says:
The current Bitcoin price of $33,421 is currently trading at a 48% cut from its all-time high (ATH) above $64,000. There are expectations that Bitcoin price will survive the extended correction from this ATH to retest new price highs. Bitcoin has a near-term projection of $50,000 and a longer-term projection of $75,000.
Himadri is an active investor in cryptocurrencies and upcoming blockchain technology projects. He has been a part of the digital asset space since 2017 and has held multiple positions as Social Media Manager, Assistant Editor, Sponsored Content Manager, Cryptocurrency Journalist roles in reputed news outlets like NewsBTC, Bitcoinist and CryptoPotato. He has also helped numerous blockchain projects gain prominence through terse and succinct marketing/technical content. Himadri comes with a marketing and engineering background, and has worked with reputed names such as GE Healthcare, Volvo Trucks and Polycom before moving into crypto.
LAGOS (CoinChapter.com) — Monday’s trading session has marked a return to the bears for Bitcoin and other top cryptocurrencies after...
Our Partners
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cookielawinfo-checbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.