- Bitcoin’s historical performance in September has typically been bearish.
- Recent significant price drops have amplified fear and uncertainty.
- Growing narrative suggests that BlackRock is behind Bitcoin’s price weakness.
The tumbling Bitcoin price, which fell to a 10-week low in August, has been a cause for concern within the crypto market. What’s more, price action during the tail end of Q3 has been typically bearish, compounding fears of further drawdowns ahead.
Historically, BTC has performed poorly during September. With August drawing to a close amidst tightening macroeconomic conditions and ongoing uncertainty, the threat of further painful movements looms large.
Bitcoin’s September Sorrow
The recent Bitcoin flash crash saw the Crypto Fear & Greed Index sink to a reading of 37, indicating fearful sentiment within the markets.
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Sounding the alarm, Trader “Daan Crypto Trades” told his near 350k followers that the last six consecutive Septembers played host to overall losses for Bitcoin. Analysis of the chart accompanying his tweet showed that, since 2013, just two years out of the last ten, saw gains in September, while the remaining eight suffered monthly losses of between -1.76% and -19.01%.
On a more positive note, Daan Crypto Trades underlined that the following month, October, is historically BTC’s best-performing month.
Nonetheless, in the here and now, fear and uncertainty remain the dominant narrative despite Bitcoiners disagreeing on the cause.
Is BlackRock to Blame?
BlackRock’s application for a spot Bitcoin ETF in June proved to be a boon for industry in the week that followed, but three months on and some are wondering if the world’s largest asset manager is behind the recent price drops. YouTuber Crypto Rover theorized that the firm may be deliberately driving down prices to acquire coins on the cheap in readiness for the ETF going live.
Chiming in with this theory, Tecnhical Analyst FlameseN アナリスト ₿ ⟁ wondered whether a wallet that had acquired 118,000 BTC (US$3.1 billion) over the last three months is BlackRock controlled.
Others believe that tightening macro conditions are to blame for the recent BTC price drops after it emerged that August 17’s flash crash coincided with news that Chinese property firm Evergrande had filed for bankruptcy protection.
On the Flipside
- Bitcoin’s inherent volatility often leads to quick rebounds.
- The upcoming halving in April 2024 remains a potential catalyst for bullish movement among hopeful market participants.
Why This Matters
Past performance should not be taken as an indicator of the future. Nonetheless, understanding these dynamics could help investors better navigate volatile movements.
Find out how long-term Bitcoin holders reacted to the recent flash crash:
Bitcoin’s Flash Crash to $25k: Long-Term Holders Unfazed by Market Panic
Read more about CoinDCX becoming the latest crypto firm to cut staff:
Mumbai-Based CoinDCX Exchange Cuts Staff as Crypto Winter Bites Harder
