Bitcoin, the most valuable cryptocurrency by market value, fell 8.73% at the end of August, which is in line with how it has always done this month. In a recent tweet, well-known expert Ali Martinez said that Bitcoin’s behavior in August followed the usual pattern.
This made people worry about September, which is usually a tough month for the cryptocurrency. Spot On Chain’s new information, on the other hand, suggests that this September might be different from others. Here are five reasons why this year might be different.
According to Spot On Chain, the first reason is that a bad August might actually make September better. The study shows that almost 43% of times when August was bad, September was good the following year. Bitcoin was already having a bad month in August, but it might get better next month.
Bitcoin Long-Term Holders’ Impact
Another reason is that there is a lot less push to sell. Three big companies sold a total of 170,917 BTC, which is worth about $10.69 billion, in July and August. This included the German government, which in early July got rid of 49,859 BTC. Now that these big sales are over, the market may not be under as much pressure to go down, which could lead to a comeback.
Long-term Bitcoin users also help keep the price stable. These people added 262,000 BTC to their total supply in August, taking it to 14.82 million BTC, which is 75% of the total supply. If they keep believing in Bitcoin, it might help the market get through any rough patches in September.
Also, Bitcoin ETFs might be a new source of buying power. If the trend of having positive and negative months keeps up, ETF investors may buy more BTC in September, which would help the price even more.Lastly, the state of the economy as a whole could also play a part.
Some people think that the Federal Reserve might lower interest rates in September. If they do, it will likely lead to more demand for riskier investments like Bitcoin. Also, FTX plans to pay back its debts of $16 billion in cash instead of cryptocurrency, so some of these funds could be put back into the cryptocurrency market.
BTC has had a rough September in the past, but this year things might be different because there is less pressure to sell, long-term buyers are strong, ETF demand is possible, and the economy is doing well. BTC could surprise the market by doing well, going against what has happened in the past.
